长虹美菱股份有限公司
CHANGHONG MEILING CO., LTD.
二〇二四年年度报告Annual Report 2024
I. Important Notice, Table of Contents and Definitions
Board of Directors, Supervisory Committee, all directors, supervisors and senior executives of ChanghongMeiling Co., Ltd. (hereinafter referred to as the Company) hereby confirm that there are no any fictitiousstatements, misleading statements, or important omissions carried in this report, and shall take allresponsibilities, individual and/or joint, for the reality, accuracy and completion of the whole contents.Mr. Wu Dinggang, Chairman of the Company, Mr. Pang Haitao, person in charge of accounting work and Mr.Hu Xiangfei, person in charge of accounting organ (accountant in charge) hereby confirm that the FinancialReport of 2024 Annual Report is authentic, accurate and complete.The Company did not have directors, supervisors and senior executives of the Company could not guarantee thereality, accuracy and completion of the whole contents or have objections.All directors attended the board meeting to review this report in person.Modified audit opinions notes
□ Applicable √ Not applicable
Pan-China Certified Public Accountants LLP issued standard unqualified Auditors’ Report for the Company’sFinancial Report of 2024Major defects in internal control
□ Applicable √Not applicable
The Company had no major defects in internal control in the reporting period.Risk warning of concerning the forward-looking statements with future planning involved in annual report
√ Applicable □Not applicable
Concerning the forward-looking statements with future planning involved in the Report, they do not constitute asubstantial commitment for investors, investors and the person concerned should maintain adequate riskawareness, furthermore, differences between the plans, forecast and commitments should be comprehended.Investors are advised to exercise caution of investment risks.Investors are advised to read the full text of semi-annual report, and pay particular attention to the following riskfactors:
More details about the possible risks and countermeasures in the operation of the Company are described in thereport “XI. Risks and countermeasures” of “Section III Management Discussion and Analysis”, investors areadvised to read the relevant content.Securities Times, China Securities Journal and Juchao Website (www.cninfo.com.cn) are the media forinformation disclosure for year of 2024that appointed by the Company. All public information under the name ofthe Company disclosed on the above said media and website shall prevail, and investors are advised to exercisecaution.Does the Company need to comply with disclosure requirements of the special industry: NoProfit distribution pre-plan or capitalizing of common reserves pre-plan deliberated by the Board in the annualperiod
√ Applicable □Not applicable
The Company has no plans of cash distribution, bonus shares and capitalizing of common reserves either.Whether to increase the share capital with public reserve
□Yes √No
The profit distribution plan for year of 2024, that deliberated and approved by 11th session of the 11th BODwas: take total shares of 1,029,923,715 shares as base dated 31 December 2024, distributed 3.3 Yuan (taxincluded) bonus in cash for every 10-share hold by all shareholders, no share bonus issued and no capitalizingof common reserves carried out.Directors, supervisors and senior executives of the Company respectively signed a Written ConfirmationOpinions for 2024 Annual Report.Supervisory Committee of the Company formed Written Examination Opinions for 2024 Annual Report.
Contents
I.Important Notice, Table of contents and Definitions 2II. Company Profile & Financial Highlights. 7III. Management Discussion & Analysis 14IV. Corporate Governance 57V. Environmental & Social Responsibility 92VI. Important Events 97VII. Change of share capital and shareholding of Principal Shareholders 170VIII. Situation of the Preferred Shares 177IX. Corporate Bond 178X. Financial Report 179
Documents Available for Reference
I.Financial statement carrying the signatures and seals of the Chairman, principal of the accountingworks and person in charge of accounting organ;II. Original audit report carrying the seal of the CPA and signature & seal of the accountants;III. Original documents of the Company and manuscripts of public notices that disclosed in the websitedesignated by CSRC in the report period;
Definition
| Terms to be defined | Refers to | Definition |
| Company, The Company, Changhong Meiling or Meiling Electric | Refers to | CHANGHONG MEILING CO.,LTD. |
| Sichuan Changhong or controlling shareholder | Refers to | Sichuan Changhong Electric Co., Ltd. |
| Changhong Group | Refers to | Sichuan Changhong Electronics Holding Group Co., Ltd. |
| Hong Kong Changhong | Refers to | CHANGHONG (HK) TRADING LIMITED |
| Meiling Group | Refers to | Hefei Meiling Group Holdings Limited |
| Industry Investment Group | Refers to | Hefei Industry Investment Holding (Group) Co., Ltd. |
| Changhong Air-conditioner | Refers to | Sichuan Changhong Air-conditioner Co., Ltd. |
| Zhongke Meiling | Refers to | Zhongke Meiling Cryogenic Technology Co., Ltd. |
| Mianyang Meiling | Refers to | Mianyang Meiling Refrigeration Co., Ltd. |
| Jiangxi Meiling | Refers to | Jiangxi Meiling Electric Appliance Co., Ltd. |
| Ridian Technology | Refers to | Changhong Meiling Ridian Technology Co., Ltd. |
| Wulian Technology | Refers to | Hefei Meiling Wulian Technology Co., Ltd |
| Zhongshan Changhong | Refers to | Zhongshan Changhong Electric Co., Ltd. |
| Hefei Industrial | Refers to | Hefei Changhong Industrial Co., Ltd. |
| Meiling Life Appliances | Refers to | Hefei Changhong Meiling Life Appliances Co., Ltd. |
| Changhong Huayi | Refers to | Changhong Huayi Compressor Co., Ltd. |
| Zhiyijia Company | Refers to | Sichuan Zhiyijia Network Technology Co., Ltd. |
| Pan-China | Refers to | Pan-China Certified Public Accountants LLP |
| CSRC | Refers to | China Securities Regulatory Commission |
| Anhui Securities Bureau | Refers to | China Securities Regulatory Commission, Anhui Province Securities Regulatory Bureau |
| SSE | Refers to | Shenzhen Stock Exchange |
II. Company Profile & Financial Highlights.
I. Company Profile
| Short form of the stock | Changhong Meiling, Hongmeiling B | Stock code | 000521,200521 |
| Short form of the Stock after changed (if applicable) | N/A | ||
| Stock exchange for listing | Shenzhen Stock Exchange | ||
| Name of the Company (in Chinese) | 长虹美菱股份有限公司 | ||
| Short form of the Company (in Chinese) | 长虹美菱 | ||
| Foreign name of the Company (if applicable) | CHANGHONG MEILING CO.,LTD. | ||
| Abbr. of English name of the Company (if applicable) | CHML | ||
| Legal representative | Wu Dinggang | ||
| Registrations add. | No. 2163, Lianhua Road, Economic and Technology Development Zone, Hefei | ||
| Code for registrations add | 230601 | ||
| Historical changes on the registration address | The Company was registered in the Hefei Administration for Industry and Commerce on November 25, 1992 with the address registered as Linquan Road, Hefei City (Meiling Economic Development Zone); on March 13, 1997, registered address changed to No.48 Wuhu Road, Hefei instead of Linquan Road, Hefei City (Meiling Economic Development Zone); on May 19, 2008, the address changed to No. 2163, Lianhua Road, Economic and Technology Development Zone, Hefei from No.48 Wuhu Road, Hefei. Registered address of the Company has not changed during the reporting period. | ||
| Offices add. | No. 2163, Lianhua Road, Economic and Technology Development Zone, Hefei | ||
| Codes for office add. | 230601 | ||
| Website | http://www.meiling.com | ||
| info@meiling.com | |||
II. Person/Way to contact
| Secretary of the Board | |
| Name | Li Xia |
| Contact add. | No. 2163, Lianhua Road, Economic and Technology Development Zone, Hefei |
| Tel. | 0551-62219021 |
| Fax. | 0551-62219021 |
| lixia@meiling.com |
III. Information disclosure and preparation place
| Website of the Stock Exchange where the annual report of the Company disclosed | Shenzhen Stock Exchange www.szse.cn |
| Media and Website where the annual report of the Company disclosed | Securities Times, China Securities Journal and Juchao website: http://www.cninfo.com.cn |
| Preparation place for annual report | Room of secretary of the Board, 2/F , administrative center, Office building of the Company |
IV. Registration changes of the Company
| Uniform social credit code: | 9134000014918555XK | |
| Changes of main business since listing (if applicable) | No changes | |
| Previous changes for controlling shareholders (if applicable) | 1. In October 1993, after initial listing, controlling shareholder of the Company-- Hefei Meiling Industrial Corp. (renamed as Hefei Meiling Group Co., dated 23 May 1994), executing controlling rights of the Company and management right of the state-owned assets on behalf of Hefei State-owned Assets Management Office, named at that time; 2. From November 1997 to May 2003, controlling shareholder of the Company was Hefei Meiling Group Holding Co., Ltd. (established base on former Meiling Group Co.,, “Meiling Group” for short), an enterprise solely owned by the State; mainly operating the state-owned capital in authorized from State-owned Assets Management Commission of Hefei City, ensuring the maintenance and appreciation of state-owned assets; 3. On 29 May 2003, Meiling Group entered into “Equity Transfer Agreement” with ShundeGreenKel Enterprise Development Co., ltd. (“GreenKel”), the 82,852,683 state-owned shares held by the Company was transfer to GreenKel. After transferring, GreenKel comes to the first largest shareholder of the Company. 4. According to the spirit of “Bulletin of Treatment Opinions on GreenKel Company purchasing State-owned Assets Shares of Listed Company” (GZFCQ[2006] No.: 44) jointly issued from SASAC and Ministry of Finance in April 2006, Meiling Group took back the Meiling Electric 82,852,683 shares from GreenKel by procedures, which has been transferred. In September 2006, relevant equity transfer agreement signed between the Meiling Group and GreenKel is invalid, which was confirmed by the “Award” ((2006) HZZ No.: 104) issued from arbitration commission of Hefei; the state-owned legal person’s 82,852,683 shares, held by GreenKel, should return to Meiling Electric, and relevant equity consideration will pay to GreenKel by Meiling Group . On 29 December 2006, the 82,852,683 shares of Meiling Electric were transfer to Meiling Group by GreenKel, and Meiling Group becomes the controlling shareholder of Meiling Electric again. 5. On 18 May 2006 and 11 January 2007, Meiling Group entered into “Equity Transfer Agreement of Meiling Electric” and “Supplementary Agreement of Equity Transfer of Meiling Electric” respectively with Sichuan Changhong and Changhong Group, among the 123,396,375 shares held by Meiling Group, 82,852,683 shares were transferred respectively to Sichuan Changhong and Changhong Group according to the transfer way regulated in agreement; of this transferring, 45,000,000 shares (10.88% of total share capital of the Company) were transferred to Sichuan Changhong, the first largest shareholder of the Company while 37,852,683 shares (9.15% of total share capital of the Company) were transferred to Changhong Group, the third largest shareholder of the Company. 6. On 29 October 2008, Changhong Group and Sichuan Changhong entered into “Equity Transfer Agreement of Hefei Meiling Co., Ltd.”, the 32,078,846 restricted circulations A shares of Meiling Electric held by Changhong Group were transferred by agreement to Sichuan Changhong. On 23 December 2008, the aforesaid equity transfer was approved by “Reply on Matters of Equity held by State-owned Shareholders of Hefei Meiling Co., Ltd.” (GZCQ(2008) No.: 1413) from SASAC; on 21 January 2009, the aforesaid transfer was registered for ownership transfer in Shenzhen Branch of China Securities Depository and Clearing Corporation Limited.The first majority shareholder of the Company comes to Sichuan Changhong. 7. Sichuan Changhong participated in the Company's private placement, and Sichuan Changhong and its concert | |
party, Hong Kong Changhong, purchased the Company's shares through bidding transaction in the secondarymarket.
8. Ended as 31 December 2023, Sichuan Changhong and its concerted action Hong Kong Changhong totally holds281,832,434 shares of the Company, a 27.36% in total share capital of the Company; Sichuan Changhong directlyholds 248,457,724 A-share of the Company, a 24.12% in total share capital of the Company while Hong KongChanghong holds circulation B-share of the Company amounting as 33,374,710 shares, a 3.24% in total share capitalof the Company.
V. Other relevant information
(1) CPA engaged by the Company
| Name of CPA | Pan-China Certified Public Accountants LLP |
| Offices add. for CPA | No.128, Xixi Road, lingyin Street, XihuDistrict,Hangzhou |
| Signing Accountants | Li Yuanliang, Peng Jiahui |
(2) Sponsor engaged by the Company for performing continuous supervision duties in reporting period
□ Applicable √ Not applicable
(3) Financial consultant engaged by the Company for performing continuous supervision duties inreporting period
□ Applicable √ Not applicable
VI. Main accounting data and financial indexesWhether it has retroactive adjustment or re-statement on previous accounting data
√Yes□ No
Retroactive adjustment or restatement：Changes in accounting policies and mergers under the same control
| 2024 | 2023 | Changes in the current year over the previous year (+,-) | 2022 | |||
| Before adjustment | After adjustment | After adjustment | Before adjustment | After adjustment | ||
| Operating income (RMB) | 28,601,036,014.96 | 24,247,678,970.56 | 24,377,974,386.94 | 17.32% | 20,215,220,192.20 | 20,607,042,437.68 |
| Net profit attributable to shareholders of the listed company (RMB) | 699,270,051.82 | 741,038,108.54 | 735,828,796.67 | -4.97% | 244,538,734.49 | 216,121,152.94 |
| 2024 | 2023 | Changes in the current year over the previous year (+,-) | 2022 | |||
| Before adjustment | After adjustment | After adjustment | Before adjustment | After adjustment | ||
| Net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses (RMB) | 690,447,639.63 | 749,415,002.39 | 744,635,309.81 | -7.28% | 102,739,493.47 | 73,207,460.84 |
| Net cash flow arising from operating activities (RMB) | 3,970,257,217.96 | 2,082,343,305.04 | 2,072,909,430.47 | 91.53% | 1,465,155,748.06 | 1,463,033,308.55 |
| Basic earnings per share (RMB/Share) | 0.6790 | 0.7195 | 0.7144 | -4.96% | 0.2366 | 0.2098 |
| Diluted earnings per share (RMB/Share) | 0.6790 | 0.7195 | 0.7144 | -4.96% | 0.2366 | 0.2098 |
| Weighted average ROE | 11.18% | 13.49% | 13.40% | Reduce by 2.22 percentage points | 4.96% | 4.39% |
| Year-end of2024 | Year-end of2023 | Changes at end of the current year compared with the end of previous year (+,-) | Year-end of2022 | |||
| Before adjustment | After adjustment | After adjustment | Before adjustment | After adjustment | ||
| Total assets (RMB) | 23,972,603,896.48 | 19,391,604,526.19 | 19,638,615,277.46 | 22.07% | 16,200,361,212.80 | 16,650,451,363.17 |
| Net assets attributable to shareholder of listed company (RMB) | 6,085,800,940.38 | 5,824,782,654.09 | 6,061,337,941.39 | 0.40% | 5,168,286,872.09 | 5,410,040,042.66 |
Note: In October 2024, the Company acquired 99% of the equity of Hefei Changhong Industrial Co., Ltd.(hereinafter referred to as "Hefei Industrial") held by the controlling shareholder Sichuan Changhong ElectricCo., Ltd. with its own funds; Hefei Meiling IOT Technology Co., Ltd., a subsidiary, acquired 1% of the sharesof Hefei Industrial held by Sichuan Changhong Innovation Investment Co., Ltd., a subsidiary of SichuanChanghong, with its own funds. On November 20, 2024, Hefei Industrial has completed the industrial and
commercial change registration procedures for the change of shareholders of the company, and obtained the"Registration Notice" issued by the Market Supervision and Administration Bureau of Hefei Economic andTechnological Development Zone, Anhui Province. After the completion of the equity transfer, the Companyholds 100% of the equity of Hefei Industrial. According to the relevant provisions of the No. 33 AccountingStandard for Business Enterprises-Consolidated Financial Statement, the parent company shall adjust theopening number of the consolidated statement and at the same time shall adjust the relevant items of thecomparative statements due to the addition of subsidiaries and businesses due to the business combination underthe common control during the reporting period, so as to treat the consolidated reporting entity as having existedsince the time when the ultimate controller began to control. Accordingly, the opening numbers and the numbersof the same period of the previous year have been restated.Reason for change in accounting policy and correction of accounting errors
In December 2024, the Ministry of Finance issued the Interpretation No. 18 of Accounting Standards forBusiness Enterprises (No. 24[2024]Cai Kuai). The Company shall change its accounting policy as required, andin accordance with the requirements of the notice to connect the old and the new, for the first implementation ofthis interpretation, the above-mentioned quality kind assurance that was originally included in the "salesexpenses" account in 2024 and reported in the "sales expenses" statement items will be included in the "mainbusiness costs" and "other business costs" accounts as accounting policy change and presented in the “operatingcosts" statement item, and the impact of the same period of the previous year is retrospectively adjusted to therelevant financial statement items and the relevant information is disclosed in the notes to the financialstatements.The lower one of net profit before and after deducting the non-recurring gains/losses in the last three fiscal yearsis negative, and the audit report of last year shows that the ability to continue operating is uncertain
□Yes √ No
The lower one of net profit before and after deducting the non-recurring gains/losses is negative
□Yes √ No
VII. Accounting data difference under domestic and foreign accounting standards
(1) Difference of the net profit and net assets disclosed in financial report, under both IAS (InternationalAccounting Standards) and Chinese GAAP (Generally Accepted Accounting Principles)
□ Applicable √ Not applicable
The Company has no difference of the net profit and net assets disclosed in financial report, under both IAS(International Accounting Standards) and Chinese GAAP (Generally Accepted Accounting Principles) inreporting period.
(2) Difference of the net profit and net assets disclosed in financial report, under both foreign accountingrules and Chinese GAAP (Generally Accepted Accounting Principles)
√ Applicable □ Not applicable
In RMB
| Net profit attributable to shareholders of listed company | Net assets attributable to shareholders of listed company | |||
| Current period | Previous period | Ending amount | Opening amount | |
| Chinese GAAP | 699,270,051.82 | 735,828,796.67 | 6,085,800,940.38 | 6,061,337,941.39 |
| Items and amount adjusted by foreign accounting rules | ||||
| Foreign accounting rules | 699,270,051.82 | 735,828,796.67 | 6,085,800,940.38 | 6,061,337,941.39 |
The Company had no difference of the net profit or net assets disclosed in financial report, under either foreignaccounting rules or Chinese GAAP (Generally Accepted Accounting Principles) in the period.
(3) Reasons for the differences of accounting data under accounting rules in and out of China
√ Applicable □ Not applicable
The “Notice of Relevant Issues of Audit for Company with Domestically Foreign Shares Offering” was issuedfrom CSRC dated 12 September 2007, since the day issuing, cancel the previous “dual audit” requirement forcompanies who offering domestically listed foreign shares (B-share enterprise) while engaging securitiespractice qualification CPA for auditing. The Company did not compile financial report under foreign accountingrules since 2007, the financial report of the Company is complying on the “Accounting Standard for BusinessEnterprise” in China, and therefore, there are no differences of accounting data under accounting rules in andout of China at period-end.VIII. Quarterly main financial indexIn RMB
| First quarter | Second quarter | Third quarter | Fourth quarter | |
| Operating income | 5,945,935,887.13 | 9,013,415,136.41 | 7,815,798,948.22 | 5,825,886,043.20 |
| Net profit attributable to the shareholders of the listed company | 158,489,245.31 | 257,599,704.87 | 115,953,785.77 | 167,227,315.87 |
| Net profit after deducting of non-recurring gain/loss attributable to the shareholders of listed company | 188,334,801.75 | 245,223,015.94 | 81,753,224.33 | 175,136,597.61 |
| Net Cash flow generated by business operation | -116,980,056.07 | 2,851,382,750.10 | 19,585,735.64 | 1,216,268,788.29 |
Are there significant differences between the above financial indicators or their total sum and the financialindicators related to the company's disclosed quarterly and semi annual reports
□Yes √No
IX. Items and amounts of non-recurring profit (gains)/losses
√ Applicable □ Not applicable
In RMB
| Item | 2024 | 2023 | 2022 | Note |
| Gains/losses from the disposal of non-current asset (including the write-off that accrued for impairment of assets) | -4,568,990.35 | 1,880,089.33 | 27,602,023.18 | Found more in “Income from assets disposal” and “Non-operation income/expenses” |
| Governmental subsidy calculated into current gains and losses(while closely | 95,130,581.90 | 80,747,233.76 | 87,509,992.34 | Found more in “ Financial expenses”, “Other income" |
| related with the normal business of the Company, the government subsidy that accord with the provision of national policies and are continuously enjoyed in line with a certain standard quota or quantity are excluded) | ||||
| Net profit and loss of subsidiaries arising from mergers of enterprises under the same control from the beginning of the period to the merger date | 1,918,902.01 | |||
| Gains/losses of fair value changes arising from holding of the trading financial asset, trading financial liability and investment earnings obtained from disposing the trading financial asset, trading financial liability, andfinancial assets available for sale, except for the effective hedging business related to normal operation of the Company | -109,763,982.52 | -91,667,835.90 | 36,312,576.77 | Found more in "Financial cost”, “Investment income” and “Income of fair value changes” |
| Switch back of the impairment for receivables that has impairment test independently | 28,600,649.28 | 4,547,547.09 | 2,834,795.58 | Found more in “Account receivable" and " Constrict assets" |
| Other non-operating income and expenses other than the above | 3,048,181.61 | 6,704,743.84 | 977,576.55 | Found more in “Non-operation income" and " Non-operation expenses" |
| Less: impact on income tax | -4,813,416.23 | -377,847.36 | 3,581,742.85 | |
| Impact on minority shareholders’ equity (post-tax) | 10,356,345.97 | 11,396,138.62 | 8,741,529.47 | |
| Total | 8,822,412.19 | -8,806,513.14 | 142,913,692.10 | -- |
Details of other gains/losses items that meets the definition of non-recurring gains/losses:
□ Applicable √ Not applicable
There are no other gains/losses items that meet the definition of non-recurring gains/losses in the Company.Explain the items defined as recurring profit (gain)/loss according to the lists of extraordinary profit (gain)/lossin Q&A Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the Public--- Extraordinary Profit/loss
□ Applicable √ Not applicable
There are no items defined as recurring profit (gain)/loss according to the lists of extraordinary profit (gain)/lossin Q&A Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the Public--- Extraordinary Profit/loss.
III. Management Discussion & AnalysisI. Industry of the Company during the reporting period
1. Refrigerator industry
As a mature industry, the refrigerator industry has entered a high-quality development stage dominated bystock replacement, with a nearly satured market penetration rate. In the fourth quarter of 2024, under the strongstimulus of national subsidy policy for trade-in programs, the refrigerator market showed a structural recovery.According to AVC data, in 2024, the omni-channel retail volume was 40.19 million units, with a year-on-yearincrease of 4.9%, and the retail sales was RMB 143.4 billion, with a year-on-year increase of 7.6%. The doubleincrease in both volume and sales reflected the transformation of the market from "price competition" to "valueupgrade", and the demand for middle- and high-end products increased significantly under the promotion ofpolicies, with the online price range of 4000-5000 yuan and offline price range of Above 8000 yuan (high-endproducts) becoming the main growth forces, and the trend of consumption degradation reversed.The synergy advantage of the "Made in China" industrial chain is further highlighted. Relying on theintelligent manufacturing upgrade and green technology iteration, the export competitiveness of home appliancescontinued to increase, plus the growth of overseas demand, which promote the export business to show a certaingrowth. According to industry online data, the export volume of refrigerators in 2024 was 51.88 million units,with a year-on-year increase of 18.6%, mainly due to the recovery of demand in emerging markets and therestocking needs in European and American markets.
2. Air conditioning industry
The development of China's domestic air conditioning market in 2024 followed a winding path. Amid asluggish real estate market and generally rising commodity prices, the industry's average price continued todecline in the first half of the year. However, driven by the national subsidy policy for trade-in programs, theindustry ended the year with an uptick in performance. According to AVC's aggregated data, China's domestic airconditioner sales reached 59.79 million units in 2024, with a year-on-year decline of 1.7%, and the total retailsales amounted to RMB 207.1 billion, with a year-on-year decline of 2%.
China's air conditioner exports experienced explosive growth in 2024. Although the Red Sea crisis early inthe year prolonged shipping cycle for European orders, the "Belt and Road Initiative (BRI)" boosted infrastructuredevelopment in partner regions, stimulating demand. Mature markets like Europe and the U.S. saw low inventorylevels alongside steady demand recovery, while emerging markets continued to drive growth. Rising globaltemperatures and overseas restocking needs further fueled export expansion. Data from Industry Online showsthat China's total air conditioner exports in 2024 hit 85 million units, with a year-on-year increase of 28.3%.
3. Washing machine industry
In 2024, China's macroeconomic development followed a volatile trajectory, exhibiting a "high-low-high"V-shaped pattern throughout the year. The home appliance market began recovering in the second half after the
introduction of the trade-in policy. According to AVC's aggregated data, domestic sales remained stable withmoderate growth: The omni-channel retail volume was 42.97 million units, with a year-on-year increase of 7.3%;The retail sales reached RMB 101.4 billion, with a year-on-year increase of 7.6%. On the export front, growthslowed due to rising shipping costs and geopolitical uncertainties. Data from Industry Online shows Chinaexported 45.11 million washing machines in 2024, with a year-on-year increase of 17.3%.II.Main businesses of the company engaged in during the PeriodAs one of China's leading appliance manufacturers, the Company operates four major domestic productionbases (Hefei, Mianyang, Jingdezhen, Zhongshan) and overseas facilities, including Indonesia. The Companycarefully builds the core competitiveness of the enterprise with technological innovation and product innovation.With the advanced R&D team and advanced technology accumulation, Meiling has made continuousbreakthroughs in terms of frequency conversion, intelligence, preservation, thin wall, odourlessness, energysaving, air cooling, deep cooling, simulation, ultra-thin, cleaning and clothing care. The Company has a nationalenterprise technology center, a national industrial design center, a national post-doctoral research center, and a 5Gindustrial Internet innovation application laboratory. It has also established the first RoHS public testing center inAnhui Province, a green energy-saving refrigerator engineering technology research center in Anhui, anenergy-saving and fresh-keeping green refrigerator engineering research center in Anhui, and a smart homeappliance manufacturing innovation center in Anhui.In recent years, the Company has successively won many national honorary titles such as "IntelligentManufacturing Pilot Demonstration Project for Smart Refrigerators", "National Green Factory", "NationalQuality Leading Enterprise in Home Appliance Industry", "National Technology Innovation DemonstrationEnterprise" and "China Industry-University-Research Cooperation Innovation Demonstration Enterprise". At thesame time, the Company has won a number of technology and product innovation honors by virtue of its stronginnovation, products and brand, and a number of Meiling products have repeatedly won multiple domestic awards,constantly demonstrating Meiling's ability and strength in intelligent innovation technology.FrozenFresh Refrigerator 506WP9BDZ won the Aipulan Innovation Prize for its industry-leadingFreshLock Technology (top-mounted constant-temperature fresh freezing system), which was ChanghongMeiling-originated breakthrough to solve the chronic industry issue of repeated freezing cycles through disruptivecryogenic innovation, and promote the upgrading of fresh-keeping consumption in the refrigerator industry;M-Fresh Refrigerator BCD-511WQ6 won the German 2024 Red Dot Award & International Industrial DesignAward for its 59.9cm flush-fit installation, hydro-active freshness technology, constant temperature and freshfreezing technology, and precise temperature/humidity monitoring system; The four-door refrigerator (cross)appearance patent won the 25th China Excellence Award for Appearance Design in 2024; The refrigerator (openstate) appearance patent won the 11th Anhui Silver Award for Appearance Design in 2024;Meiling 10kg"BlueOxygen as Hand Washing" Drum Washing Machine LRS1H100D set a world record of "Drum washingmachine with the least residue after rinsing in the world" in world record association. Through the "Blue OxygenResidue Removal Technology", the product feature of "BlueOxygen as Hand Washing" series was established,which promoted the R&D of washing machines to the level of "care" and "cleanliness", bringing more health and
science to users' life; DustFree Dual-Blade Wall AC Unit was awarded the title of "Innovative Product of theYear" by China HVAC Summit; UltraPowerSaver AC Series were selected as "Annual Energy-Efficient &Eco-Friendly Product of the Year" by Chinese Association of Refrigeration; Meiling domestic hot water and gasquick water heaters (JSQ30-MR-BS16516, JSQ30-MR-BS616Q3) won the "Boiling Quality Award" in 2024;Zhongke Meiling's Large-scale Ultra-Low Temp Automated Biobank Technology won the "Hefei EmployeeInnovation First Prize".After more than 40 years of development, the Company has developed from single refrigerator products to anew pattern of coordinated development of refrigerators (freezers), air conditioners, washing machines, majorkitchen appliances, small home appliances and biomedical cryogenic storage equipment. Through continuousinnovation, it has successively introduced a series of industry-leading products, such as the M-Fresh refrigeratorwith the best fresh-keeping effect in the industry, the industry's first all-dust-free fresh air conditioner, the"BlueOxygen as Hand Washing" Drum Washing Machine with the least stain residue after rinsing in the world,the industry's strontium-rich intelligent tea bar machine, and the ultra-low temperature medical refrigerator with arefrigeration temperature up to minus 180°C, which has constantly brought consumers a fresher lifestyle withfresher products.In the future, the Company will focus on the business policy of "innovation-driven, resource integration,industrial synergy and internal and external integration" to lead the industrial development, help the industrialmatrix, consolidate the market foundation and accelerate its own development.During the reporting period, main income of the Company coming from refrigerator (freezer), air conditioner,washing machine, small home appliances, kitchen & toilet products and biomedical etc. total amounting to 28.335billion yuan, a 99.07% of the operating income.III. Core Competitiveness Analysis(I) Brand capabilityThe Company is one of the well-known electrical appliance manufacturers in China, with many product linessuch as refrigerators, freezers, air conditioners, washing machines, kitchen appliances, biomedicine and so on.In 2024, Meiling continued to implement its "Brand Revitalization" strategy, adhering to the brandproposition of "Beautiful China, Fresh Meiling" with a product-driven branding approach. By developing thefreshest products and cultivating the freshest brand image, we aim to plant the seed of "freshness" in consumers'minds, mold the brand association of "Meiling = Fresh" in consumers' mind, enhance brand awareness, reputationand loyalty, and fulfill the brand mission of "Meiling, may the happiness come".In 2024, the Company enhanced brand reputation, popularity and loyalty by strengthening brand publicity,expanding brand dissemination channels, innovating brand marketing methods and elevating content operationquality. It signed a contract to become the Official Partner of FIS Snowboard & Freeski Big Air World Cup tocreate winter sports IP marketing campaigns; It launched "Rose Initiative" cross-marketing programs coveringmetro transit systems, music festivals, university campuses and other scenes; It improved the ability of content
operation, and continuously improved the content operation on new media platforms such as Douyin (TikTok)and Xiaohongshu (Little Red Book), effectively enhancing brand awareness, reputation and loyalty.
In 2024, the Company adhered to a value-driven approach with comprehensive efficiency improvement,strengthened industrial synergy, domestic-international integration, user/customer-centered principle andtechnology leadership, to accelerate product innovation. The Company has successively launched innovativeproducts such as the Gen3 M-Fresh Refrigerator, FrozenFresh Refrigerator, "BlueOxygen as Hand Washing"Washing Machine and BlueOxygen Dryer-Care Machine, UltraPowerSaver Air Conditioner, FreshWater Tea BarMachine, and the industry's first variable frequency commercial kitchen refrigerator, with the industrial chaincontinuously extended, product structure continuously optimized, and brand core competitiveness effectivelyimproved.(II) Product capabilityThe Company has built a whole-chain innovation system of "Technical route + Product route + Promotionroute", and created a "Three-in-one" strategic layout, driving industrial development with technologicalinnovation. As a national benchmark enterprise for technological innovation, the Company has built an excellenttechnological innovation system and quality control system. Relying on the international management systemssuch as ISO9001, ISO14001 as certification foundations, and combined with the innovative platforms andhonorary qualifications owned by the Company, such as National Enterprise Technology Center, NationalIndustrial Design Center, National Intellectual Property Demonstration Enterprise, National Industrial ProductGreen Design Demonstration Enterprise, National Technological Innovation Demonstration Enterprise, ChinaIndustry-University-Research Cooperative Innovation Demonstration Enterprise, Anhui Green andEnergy-Saving Refrigerator Engineering Technology Research Center, Anhui Energy-Saving, Fresh-keeping andGreen Refrigerator Engineering Research Center and Anhui Manufacturing Innovation Center, the Company hasformed a quality assurance system covering the whole R&D and manufacturing chain. In terms of technicalstrategy, the Company is committed to the application of basic technology research and industrialization transfer,and has established a technical strategic plan with "intelligence, frequency conversion, simulation andfresh-keeping" as the core technologies and "refrigeration, new materials and foaming" as the key technologies. Interms of product R&D, it has established a four-tier R&D system of "Technical research - Platform module -Product operation unit - Planning platform", and innovatively implemented the product manager responsibilitysystem driven by product operation unit and planning, which is responsible for product definition anddevelopment, internally driving cost reduction and efficiency improvement, and externally driving salespromotion. Through the deep collaboration of "research, production and marketing", it has realized the two-wayempowerment of technological innovation and market demand, and fully connected the value chain and businesschain.
In terms of refrigerator products, through the accurate control of market trends and the research on the habitsof different consumers, it continued to promote product upgrading and breakthrough around the technologicalinnovation in "fresh, thin, narrow, embedded and intelligent" features, and improved the competitiveness of
products constantly. In 2024, the Company continued to strengthen the business cards of "Meiling Fresh","Meiling Thin", "Meiling Narrow", "Meiling Embedded" and "Meiling Intelligent", and focused on building athree-dimensional product matrix of technology, platform and space: M-Fresh Refrigerator equipped withhydro-active freshness technology, FrozenFresh Pro Refrigerator upgraded to -3.5°C with zero-impact and slightfreezing, New Gen Worry-Free Embedded Refrigerator equipped with double evaporator system and AI cloudmoisturizing technology, and differentiated 560L Zero-Flush French Door Refrigerator (Large Freezer) andeconomical 460L Zero-Flush Multi-Door Refrigerator, which accurately met the needs of consumers fordifferentiation and upgrading, and consolidated the brand features of "fresh, thin, narrow, embedded andintelligent" in all directions. In terms of freezer products, the Company has developed frost-free series, smartscreen series and ultra-freezing series freezers, and innovatively developed the FrozenFresh Vertical Freezerequipped with constant-temperature and fresh freezing function, as well as the industry's first variable frequencycommercial kitchen freezer to create "the best freezer in the industry".
In terms of air-conditioning products, it insisted on a user-centered approach, practiced innovative ideas,speeded up technological transformation and rapidly upgraded product energy efficiency. In 2024, it continuedto focus on "DustFree" and "LivingDining Pro", and continued to create differentiated product business cards of"DustFree for wall-mounted air conditioner, and LivingDining Pro for floor standing air-conditioner", andlaunched key new products such as Q7D "DustFree FreeFlow" Wall-mounted Air-conditioner and Q7V"UltraPowerSaver" Floor Standing Air-conditioner; It continued to strengthen the "PandaLazy" hero productstrategy to effectively support the implementation of the trade-in policy.In terms of washing machine products, it focused on strengthening our mid-range product portfolio, buildinga star product matrix to meet diverse market demands while continuously improving the product structure. Interms of drum washing machine, it laid up "BlueOxygen as Hand Washing" Washing Machine and BlueOxygenDryer-Care Machine to form a BlueOxygen series matrix, and create the user's reliance on "Ultra Clean" and"Zero Residual" by relying on 3X cleaning power technology and innovative BlueOxygen residue removaltechnology. At the same time, it launched the BlueOxygen Dryer-Care Machine to create a new track of "Drying& Care", achieve the feature of "Thorough Drying & Fabric Care", build the product reputation from wash - rinse- care step by step and promote the layout of products in the field of high-end and high value relying on hardcorecare technology; In terms of pulsator washing machines, it continued to improve the layout of Hercules Series,and built a high cleaning ratio of 0.9 by relying on "Mega Motor System and PowerWave Pulsator", leading thecleaning ratio of non-frequency conversion products in the industry.
In terms of major kitchen appliances and small home appliances, the Company adheres to the strategy ofproduct-driven development, focusing on core product lines, guided by market demand, while strengtheningR&D capabilities and optimizing product structure. In terms of small home appliances, the Company continued tofocus on core categories, particularly the tea beverage product line, to further solidify its market advantage. In2024, in collaboration with China University of Geosciences (Wuhan), the Company successfully developed aproprietary strontium-rich mineralization filter technology, which was applied to the "Fresh Water" Tea BarMachine, launching the N10 Fresh Water Tea Bar Machine, which simulated the natural formation of mineral
water, accelerating the dissolution of mineral elements while incorporating trace element ratio technology toachieve a scientifically balanced composition, thereby enabling strontium-rich mineralization of drinking water.This innovation has gained significant market recognition. In terms of major kitchen appliances, it remaineduser-centered principle, addressing consumer pain points through innovative improvements in producttechnology and performance to meet diverse market demands. In 2024, it conducted research onsecond-generation honeycomb energy-gathering chambers, stainless steel heat exchange, and DCvariable-frequency air supply technologies, launched new products such as the H27/36 series gas water heaterswith constant temperature control, the second-generation energy-gathering chamber series H35/H36/H70, and theself-developed electronic control series BQ2/BQ81, which were all aimed to provide consumers with healthierand more comfortable water solutions for daily life.
In terms of biomedicine, the Company adheres to the brand concept of "taking products as the main carrierand delivering core values to users", focuses on the field of life sciences, and continuously promotes productinnovation iteration and quality upgrade based on users' scenario demand, providing users with professionalfull-scenario solutions, thus shaping a safe and stable brand image and continuously enhancing the brandinfluence. In the sample ecosystem sector, the Company has steadily advanced key projects in standaloneautomation R&D tailored to users' specific scenarios, providing critical equipment for building comprehensivesample storage solutions; It innovatively developed air-cooled ultra-low-temperature refrigeration technologyand launched the world's first ultra-low-temperature freezer with undetectable defrosting, establishing it as theoptimal equipment for low-temperature storage of blood, pharmaceuticals, and raw solutions; It activelycollaborated with multiple key institutions, promoted the automation transformation of biobanks, and wasselected as a supported project under China’s "Key Technologies Demonstration Project for Biosafety". In thelaboratory biosafety product sector, the Company introduced the Ruijing series of high-efficiency biosafetycabinets, clean benches, and the Ruigu series of benchtop high-speed refrigerated centrifuges, further diversifyingits product offerings to fully meet the market's varied demands. In 2024, it developed eight centrifuge modelscovering the full product range, forming a complete product matrix.(III) Operational capabilityThe Company continuously improved its operational management system, with business objectives as theguidance and comprehensive budget management as the key approach, strengthening the integrated managementof objectives, budgets, and performance to facilitate operational improvement and goal achievement. In terms ofobjective management, centered on strategy and business policies and following the SMART principles, it hasachieved a closed-loop cycle, significantly enhancing the Company's operational quality; In terms of value chainmanagement, it has established clear delineation of responsibilities, rights, and benefits, while enhancingcollaboration across all sectors of the industry, forming a sound operational mechanism driven by objectives andsystematically interconnected; In terms of budget management, it consistently strengthened whole-process budgetcontrol, realized closed-loop tracking and management of budget forecasts, thereby providing strong support forbusiness objectives; In terms of performance management, it has established a business-centered andcustomer-focused performance evaluation system, effectively stimulating the operational potential of all units.
Meanwhile, the Company has continuously conducted benchmarking activities to consistently elevate itsoperational management standards and competitiveness.(IV) Marketing capabilityIn the domestic market, the Company continued to optimize the sales network and service system to provideusers with high-quality services, and by adhering to five key initiatives: "promoting premium products,strengthening channels, enhancing collaboration, improving efficiency, and controlling risks", drive thedevelopment of base markets and opportunity markets while continuously enhancing marketing capabilities. Interms of products, it created differentiated featured products and integrated online and offline promotionalresources to launch premium offerings; In terms of channels, it focused on consolidating foundational channels,ensuring retail channels outperforming, and expanding incremental channels; In terms of management, it refinedorganizational structures to improve operational and service efficiency. It established and enhanced an operationalmanagement system centered on rational commercial inventory management and a value management systemfocused on terminal retail pricing, fully implemented a marketing transformation from product-line-oriented salesmanagement to omni-channel and user-centered operation service, and from single-category marketing tofull-category marketing, achieved product leadership and efficiency gains through steadfast benchmarking andinnovative management, and built marketing system capabilities and long-term growth potential.The Company has comprehensively enhanced its overseas marketing capabilities by building a team ofproduct-specialized marketing professionals and cultivating versatile marketing talents with dual-product-lineoperational expertise; It has strengthened the promotion construction, established the systematic promotioncapability for overseas markets around product packaging, terminal construction and training, empoweredoverseas customers of B2B with the promotion mode of B2C, and realized the continuous growth of sales scale ofB2B through "building terminals and promoting sales"; In terms of key account (KA) business, it has deepenedour customer-centered transformation and upgrading to enhance service capabilities and improve customersatisfaction; In terms of channel strategy, it has replaced traditional trade approaches with market-drivenmethodologies to boost planning capabilities, consistently adhered to its "business-oriented andcustomer-focused" guiding principle to achieve rapid development, stable operation, profitable scale expansion,and comprehensive marketing capability enhancement. In terms of channel sales, it focused on leveragingdominant channels while expanding into emerging markets through strategic key account development initiatives;In terms of brand building, it enhanced product support for subsidiaries, established benchmark markets,vigorously developed brand agents, and implemented multi-channel strategies to build momentum for brandgrowth; In terms of product promotion, it closely followed market trends, increased the proportion of inverterproducts, optimized its product portfolio, enhanced new product launches, and ultimately strengthened its productcompetitiveness.IV. Main Business Analysis
In 2024, amid intense competition in the home appliance industry, the Company adhered to value-orientedprinciples and comprehensive efficiency improvement while strengthening industrial synergy and
internal-external integration, resulting in steady enhancement of operational quality. During the reporting period,the Company's operating income reached RMB 28.601 billion, with a year-on-year of 17.32%, its net profitattributable to the parent company reached RMB 699 million , A year-on-year decrease of 4.97%, and its benignoperation ability continued to improve.
(I) Refrigerator (freezer) industryIn domestic market, it adhered to the principle of "capturing existing markets, expanding new segments, andenhancing capabilities", comprehensively upgraded its existing channels, current customer base, new productcategories, and emerging distribution networks, at the same time it provided high-quality services to customers ontheir product operation capabilities and brand management competencies, with particular emphasis on advancingtrade-in programs and strengthening end-to-end trade-in service systems to further stimulate replacement demand.In R&D, the Company maintained a user-centered approach, anchored in its customer value innovation engine,and fully implemented an experience-oriented strategy across its R&D and manufacturing operations. By deeplyunderstanding users' needs and precisely addressing their pain points, it drove product system advancementtoward intelligent and premium-quality development through dual engines of intelligent technologyempowerment and high-end feature upgrades. In marketing, the Company has established a dual-track strategyof "Premium products + Hero SKUs," focusing on five innovative dimensions: "freshness, thinness, narrowness,embeddability, and intelligence", successfully creating an integrated online-offline product matrix. The sequentiallaunch of M-Fresh Cross-Generation models has consistently reinforced Meiling's "freshness" brand positioning.The FrozenFresh series achieved marketing resonance across both online and offline channels with full-scalevolume growth, further strengthening the "fresh-frozen" brand perception. The Seamless-Embed series has built acomprehensive channel firewall, while gradual product line integration continued to enhance Meiling's productfamily identity, ultimately driving industrial scale expansion and brand reputation elevation.In overseas markets, at the product end, the Company has increased R&D investment in mid-to-high-endproducts, with the successful launch of its overseas Cross series not only driving scale expansion but alsofacilitating product mix upgrades to enhance operational quality; At the R&D end, it maintainedinnovation-driven development, introduced differentiated products such as kimchi refrigerators for niche marketsto tap into new blue ocean opportunities; At the marketing end, it strengthened market capability building by fullyleveraging integrated R&D and supply chain competencies along with domestic sales and export synergies,achieving sustained growth in KA business.
During the reporting period, the Company's refrigerator (freezer) business realized an income of about RMB
9.296 billion, with a year-on-year increase of 5.53%.
(II) Air conditioning industryIn the domestic market, the Company has implemented the business strategy of "product first, brand priority,channel co-construction, and direct user engagement" to maintain steady development. Focusing on its twoproduct categories - "DustFree" and "LivingDining Pro" - it launched key new products including the Q7D"DustFree FreeFlow" Wall-mounted Air-conditioner and Q7D "UltraPowerSaver" Floor Standing Air-conditioner,
while strengthening its "Panda Lazy" hit product strategy to effectively support the trade-in policyimplementation; Through event marketing and media campaigns, the Company has enhanced brand promotionand continuously elevated brand influence; It has progressively advanced channel co-construction, acceleratedresource integration, and adhered to integrated online-offline operations to achieve more refined channelmanagement; It insisted on direct user engagement, implemented integrated"delivery-installation-service-recycling" processes to strengthen service guarantee, meet market service demands,and effectively improve user experience.In overseas markets, the Company has consistently promoted healthy business development by focusing onbrand momentum building, product upgrades, quality transformation, regional balance, and digital empowerment.In terms of brand-building, it has steadfastly implemented the brand-first development strategy, deepened itspresence in base markets while continuously strengthening brand foundations; In terms of market expansion, ithas concentrated on key strategic markets, achieved significant business growth through targeted marketstrategies; It has also actively explored new regions and markets with notable breakthroughs, whilesimultaneously accelerating new client development to gradually improve its customer system, thereby laying thefoundation for future performance growth.
During the reporting period, the Company's air-conditioning business realized an income of about RMB
15.407 billion, with a year-on-year increase of 33.20%.
(III) Washing machine industryIn washing machines, the Company insists on differentiated competition strategy and optimizes and adjuststhe product structure. In domestic market, the Company has adopted a user-centered approach with productexcellence as its key driver to deepen channel transformation through dual engines of product and technologicalinnovation, consistently advance premiumization and achieve scale expansion. Capitalizing on the trends offlush-embedded designs and large-capacity products, it has strengthened its mid-range premium product portfoliowhile reinforcing differentiated competitive advantages of "As Hand Washing" and "Hercules". It has launchedproducts including the BlueOxygen dry-care set, Flush-Embedded As Hand Washing series, and 12kg Herculespulsator series to significantly enhance market share and mid- and high-end product influence.In oversea markets, the Company has expanded client resources through refrigerator-washer synergies,focused on key regions and major accounts, and by introducing color-screen displays, 7kg models, it has deliveredincremental value to existing clients, enabling rapid growth of its washing machine business in key markets.During the reporting period, the Company's washing machine business realized an income of about RMB
1.747 billion, with a year-on-year increase of 31.44%.
(D) Major kitchen appliance and small home appliance industryIn the major kitchen appliance and small home appliance industry, the Company has consistently focused oncore product lines while actively driving technological upgrades and iterations of products. It has successfullylaunched new products such as the N10 Fresh Water Series tea bar machine to continuously enhanced brand
influence; It has accelerated product portfolio optimization and upgrading, implemented quality-efficiencyenhancement strategies, gradually phased out the product categories with poor market performance andunexpected consumer feedback, and output a comprehensive category planning outline; Through proactivebusiness strategy adjustments and deep operational transformation, it has established a compliance managementsystem centered around core product operations to facilitate high-quality industry development.During the reporting period, the Company's major kitchen appliance and small home appliance businessrealized an income of about RMB 1.492 billion, with a year-on-year decrease of 19.34%.(V) Biomedical industryIn the domestic market, the Company continuously implemented the reform and reconstruction ofuser-centered channel organization, co-ordinated the platform resources, promoted the horizontal expansion andvertical deepening of market segment channel system, deeply explored the user demand, further enhanced theproduct strength and service strength, expanded the user coverage, and enhanced the market competitiveness andmarket share. Through the promotion of new products, the upgrading of service capabilities and the donation ofscholarships, it has continuously strengthened its market promotion and continuously improved its brandawareness.In overseas markets, the Company has adhered to the strategy of "increasing existing clients while expandingnew client," deepened strategic cooperation with current partners while actively developing emerging markets tostrengthen both the quality and quantity of its international distribution network; Its expansion in emergingmarkets has maintained strong momentum with multiple successful project bids, accompanied by the proactiveintroduction of new products; It made continuous improvement in delivery efficiency and customer servicecapabilities, steadily enhanced client loyalty while upgrading its integrated competencies of "Product - Promotion- Delivery - After-sales", ultimately establishing a sustainable, mutually beneficial channel partnershipecosystem.During the reporting period, the Company's biomedical business realized an income of about RMB 264million, with a year-on-year decrease of 5.36%.(ii) Revenue and cost
1. Constitute of operation revenue
In RMB
| 2024 | 2023 | Increase/decrease y-o-y (+,-) | |||
| Amount | Ratio in operation revenue | Amount | Ratio in operation revenue | ||
| Total operation revenue | 28,601,036,014.96 | 100% | 24,377,974,386.94 | 100% | 17.32% |
| Manufacture of | 28,335,360,230.42 | 99.07% | 24,128,954,793.41 | 98.98% | 17.43% |
| household appliances | |||||
| Other business | 265,675,784.54 | 0.93% | 249,019,593.53 | 1.02% | 6.69% |
| On products | |||||
| Refrigerator, freezer | 9,560,071,716.63 | 33.43% | 9,088,215,517.67 | 37.28% | 5.19% |
| Air-conditioning | 15,407,055,870.21 | 53.87% | 11,566,440,523.53 | 47.45% | 33.20% |
| Washing machine | 1,746,832,584.10 | 6.11% | 1,329,017,674.88 | 5.45% | 31.44% |
| Small appliance and kitchen & toilet | 1,491,831,582.42 | 5.22% | 1,849,440,139.12 | 7.59% | -19.34% |
| Other products | 129,568,477.06 | 0.45% | 295,840,938.21 | 1.21% | -56.20% |
| Other business | 265,675,784.54 | 0.93% | 249,019,593.53 | 1.02% | 6.69% |
| Area | |||||
| Domestic | 18,352,947,530.79 | 64.17% | 16,772,667,160.17 | 68.80% | 9.42% |
| Foreign | 10,248,088,484.17 | 35.83% | 7,605,307,226.77 | 31.20% | 34.75% |
| Sub-sale model | |||||
| Direct sales | 265,675,784.54 | 0.93% | 249,019,593.53 | 1.02% | 6.69% |
| Distribution | 28,335,360,230.42 | 99.07% | 24,128,954,793.41 | 98.98% | 17.43% |
2.Situation of Industry, Product and District Occupying the Company’s Business Income and OperatingProfit with Profit over 10%
√ Applicable □Not applicable
In RMB
| Operating revenue | Operating cost | Gross profit ratio | Increase/decrease of operating revenue y-o-y | Increase/decrease of operating cost y-o-y | Increase/decrease of gross profit ratio y-o-y | |
| On Industry | ||||||
| Manufacture of household appliances | 28,335,360,230.42 | 25,262,724,426.57 | 10.84% | 17.43% | 20.42% | -2.21% |
| On products | ||||||
| Refrigerator, freezer | 9,560,071,716.63 | 8,085,319,070.60 | 15.43% | 5.19% | 8.39% | -2.50% |
| Air-conditioning | 15,407,055,870.21 | 14,334,050,593.14 | 6.96% | 33.20% | 35.82% | -1.79% |
| Area | ||||||
| Domestic | 18,108,891,124.51 | 16,073,739,954.59 | 11.24% | 9.52% | 11.72% | -1.74% |
| Foreign | 10,226,469,105.91 | 9,188,984,471.98 | 10.15% | 34.65% | 39.40% | -3.06% |
| Sub-sale model | ||||||
| Sub-sale | 28,335,360,230.42 | 25,262,724,426.57 | 10.84% | 17.43% | 20.42% | -2.21% |
Under circumstances of adjustment in reporting period for statistic scope of main business data, adjusted mainbusiness based on latest on year’s scope of period-end.
□ Applicable √Not applicable
3. Income from physical sales larger than income from labors
√ Yes □ No
In RMB
| Industries | Item | Unit | 2024 | 2023 | Increase/decrease y-o-y (+,-) |
| Manufacture of household appliances | Sales volume | 10 thousand pieces/set | 3,520.59 | 3,486.07 | 0.99% |
| Production | 10 thousand pieces/set | 3,615.15 | 3,517.94 | 2.76% | |
| Inventory | 10 thousand pieces/set | 262.95 | 140.96 | 86.54% |
Reasons for y-o-y relevant data with over 30% changes
√ Applicable □Not applicable
At the end of 2024, the inventory increased by 86.54% YOY compared with the end of the previous year,which was mainly due to the increase in air conditioning inventory. Based on the continuous strategiccooperation between domestic air conditioners and key customers, the export of international air conditionershas shown an explosive growth trend in the industry, and the production and sales of the air conditioningindustry have increased significantly. In order to ensure normal delivery and advance reserves, the inventorylevel increased significantly.
4. Performance of the material sales contract and major procurement contracts that signed by theCompany up to the reporting period
□ Applicable √Not applicable
5. Constitute of operation cost
Industry classification
In RMB
| Industries | Item | 2024 | 2023 | Increase/decrease y-o-y (+,-) | ||
| Amount | Ratio in operation cost | Amount | Ratio in operation cost | |||
| Manufacture of household appliances | Raw material | 23,131,923,420.76 | 91.57% | 19,137,016,471.04 | 91.22% | 20.88% |
Description: None
6. Whether the changes in the scope of consolidation in Reporting Period
√ Yes □ No
More details can be seen in the report “VII. Changes in the scope of the merger” and “VIII. Interests in otherentities” of “Section X Financial Report”
7. Major changes or adjustment in business, product or service of the Company in Reporting Period
□ Applicable √ Not applicable
8. Major sales client and main suppliers
(1) Major sales client of the Company
| Total top five clients in sales (RMB) | 15,762,630,982.56 |
| Proportion in total annual sales volume for top five clients | 55.11% |
| Proportion of the related parties’ sales in total annual sales volume for top five clients | 27.96% |
Information of top five clients of the Company
| No | Name | Sales (RMB) | Proportion in total annual sales |
| 1 | Client I | 7,342,537,500.60 | 25.67% |
| 2 | Client II | 6,777,644,358.51 | 23.70% |
| 3 | Client III | 654,258,536.34 | 2.29% |
| 4 | Client IV | 541,049,259.02 | 1.89% |
| 5 | Client V | 447,141,328.09 | 1.56% |
| Total | -- | 15,762,630,982.56 | 55.11% |
Other notes of main clients
□ Applicable √ Not applicable
Main suppliers of the Company
| Total purchase amount from top five suppliers (RMB) | 6,268,281,417.27 |
| Proportion in total annual purchase amount for top five suppliers | 23.85% |
| Proportion of related party’s purchase in total annual purchase amount for top five suppliers | 13.73% |
Information of top five suppliers of the Company
| No | Name | Sales (RMB) | Proportion in total annual purchase |
| 1 | Supplier 1 | 2,471,848,576.60 | 9.41% |
| 2 | Supplier 2 | 1,143,166,887.01 | 4.35% |
| 3 | Supplier Three | 1,135,390,929.15 | 4.32% |
| 4 | Supplier Four | 776,568,478.91 | 2.95% |
| 5 | Supplier Five | 741,306,545.60 | 2.82% |
| Total | -- | 6,268,281,417.27 | 23.85% |
Other notes of main suppliers
□ Applicable √Not applicable
During the reporting period, the trade business income accounted for more than 10% of the operating income
□Yes □No □Not applicable
(iii) Expenses
In RMB
| 2024 | 2023 | Increase/decrease y-o-y (+,-) | Note of major changes | |
| Sales expense | 1,477,154,043.38 | 1,423,788,018.72 | 3.75% | No major changes. |
| Administrative expense | 359,672,540.20 | 371,930,885.44 | -3.30% | No major changes. |
| Financial expense | -168,543,395.34 | -120,449,809.04 | -39.93% | It’s mainly due to the reduction of exchange losses |
| R&D expense | 637,242,233.83 | 597,529,355.84 | 6.65% | No major changes. |
(iv)Investment in R&D
√Applicable □Not applicable
| Projects | Purpose | Progress | Goals to be achieved | Expected impact on the future development of the Company |
| R&D of M-Fresh Refrigerator | Be the best refrigerator with continuous iterative product upgrading to provide users with full-space fresh-keeping in the industry (cold water molecule activation and fresh-keeping technology + fresh freezing technology at constant freezing temperature). | Completed, the product has been launched. | Create the best fresh-keeping products in the industry with Meiling Fresh features as the main line, supplemented by brand-new exterior and interior design, and continue to create Meiling Refrigerator's fresh-keeping feature to enhance Meiling's high-end market share. | User-oriented and user-demand-centered, find and solve the pain points of users in food preservation, build the best refrigerator in full-space fresh-keeping in the industry, and develop a new generation of M-Fresh product, which continues Meiling Fresh features, supplements the layout of 10,000 yuan+ products and improves the high-end market share. |
| R&D of Frozen Fresh Gen2 Refrigerator | The Gen1 Frozen Fresh Refrigerator has solved the difficulty of keeping meat fresh for users in long-term storage, but it did not solve the pain point of thawing convenience in short-term storage, which takes time to thaw. The purpose of this project is to solve such convenience pain point in short-term storage of meat for users. | Completed, the product has been launched. | Meet the short-term and long-term storage requirements for meat by adding zero-impact micro-freezing technology at -3.5°C in the refrigerating chamber. | Further consolidate Meiling's leading position in meeting the needs of users in fresh-keeping and use of meat in multiple scenarios, and further enhance the product competitiveness. |
| R&D of Frozen Fresh Vertical Freezer | Be the best and differentiated vertical (with constant-temperature fresh freezing technology) freezer in the industry to meet the fresh-keeping needs of users for frozen food. | Completed, the product has been launched. | Continue the features of Frozen Fresh Refrigerator, apply constant temperature fresh freezing technology to vertical freezer, create the best fresh-keeping vertical freezer in the industry and enhance its product competitiveness. | Extend the fresh-keeping technology of Meiling Fresh in freezers and consolidate it, and achieve corner overtaking and rapid improvement in the high-end market of freezers by the constant-temperature fresh-keeping technology. |
| R&D of "Blue Oxygen as Hand Washing" Drum Washing Machine | Enhance the image of high-end product in drum washing machines, solve the consumers' pain points of detergent residues, and further consolidate the "Washing" features of Meiling Washing Machine. | Completed, the product has been launched. | Research on and develop blue oxygen residue removal technology, and in the "pre-washing-washing-rinsing", effectively remove detergent residues and improve cleaning ability through nano micro-bubbles and blue oxygen, as well as "dissolution, | "Blue Oxygen as Hand Washing" drum washing machine upgrades the rinsing technology on the basis of washing, further consolidating Meiling washing machine's "washing" features, and it innovatively adopts TFT knob display and 506mm ultra-thin flat-embedded body to enhance |
| decomposition and reduction". | Meiling drum washing machine's product image and market influence, with the proportion of high-end products continuing to increase. | |||
| R&D of "Blue Oxygen Dryer" Heat Pump Dryer | Newly develop heat pump dryer to fill the category blank and expand the product line. | Completed, the product has been launched. | Through the blue-oxygen drying care technology, innovatively develop the blue-oxygen dryer with "drying, permeating and caring", and open up the light care track, which helps Meiling washing machine to successfully build the third pole of washing industry. | "Blue Oxygen Dryer" develops the low-temperature and gentle drying technology of 40°C heat pump to meet the drying care needs, and at the same time it adopts double-rotor inverter motor to fill the blank of hardware configuration of dryer; and creates the industry's first ion adsorption technology for nano-scale 7-level adsorption dust removal, which meets the chip removal demand under the pet economy.The successful listing of "Blue Oxygen Dryer" has formed the product features of Meiling washing machine from "washing care" to "drying care", which has effectively enhanced the industrial image and laid the foundation for opening up the third pole of industrial growth. |
| Continuous upgrading of energy efficiency technology of washing machines for domestic sale and export | Through technical upgrading, improve the washing ratio of washing machines for domestic sale, reach the advanced level of the industry in terms of energy efficiency of export products, and meet the needs of customers and consumers. | Completed, the technology has been fully applied. | The energy efficiency of washing machines for export drum products reaches A-30% and A/D energy efficiency becomes the top priority. The domestic drum products are developed with a high washing ratio of 1.2, reaching the advanced level in the industry. | The energy efficiency of 8kg and 10kg washing and drying platform products for export has reached A/D level respectively, which is the highest energy efficiency level for drying with fixed frequency fans in the EU market at present. At the same time, the energy efficiency of 10kg BLDC single drum washing machine has reached A-30%, far exceeding the high-end energy efficiency level in the market, meeting the demands of customers in different regions; The drum 10kg and 12kg platform products for domestic sale reached a washing |
| ratio of 1.2, which is in the first echelon in the current domestic sale market, effectively enhancing the confidence of customers and users in Meiling washing machine. | ||||
| R&D and application of high-frequency PFC and high-efficiency heat exchange technology for inverter air conditioner | Solve the long-term reliability problem of air-conditioning products in complex environment and the pain point of user experience, improve the refrigeration and heating performance of air-conditioner, and support green and low-carbon development. | Complete technology R&D and realize product application. | High-frequency PFC technology and high-efficiency heat exchange technology have reached the advanced level in the industry, forming an intelligent control system scheme and improving the energy efficiency of control and refrigeration systems. | The technical achievements are popularized and applied in ChanghongYunfan Series and other products, which won the world record certification, and its popularization and application will greatly enhance the performance and comprehensive competitiveness of products with various specifications and enhance the user experience. |
| Development of "Giant Energy Saving" Cabinet Air-Conditioner Products | Through technological innovation, make breakthrough in traditional energy efficiency, respond to the national green and low-carbon policy, and meet consumers' demand for efficient and energy-saving air conditioners. | The development has been completed and the products have been launched in the market in batches. | Through the 3D two-wing air supply technology, realize the uniform temperature control of the whole house, consolidate the brand positioning of "Seiko Quality", and upgrade the industry energy efficiency standards. | It has obtained the authoritative certification of "saving 3,000 kWh per year", which helps Changhong to become a green consumption benchmark, increasing the market share of energy-efficient products and promote the industry to transform into an ultra-wide temperature range, energy-saving and comfortable direction. |
| Development of All-dust-free and Free Air Wall-mounted Air-conditioner Products | Through the technical innovation of double louvers and all-dust-free design, solve the pain points of users on dust accumulation and straight wind blowing in traditional air conditioners, and improve the health and comfortable air supply experience. | The development has been completed and the products have been launched in the market in batches. | Strengthen the product attribute label of Changhong, practice the product concept of "Seiko Quality, Comfort in Every Degree" for Changhong Air Conditioner, and push the industry into an all-dust-free era. |
Establish a product model ofproduct quality improvement andair supply status visualization,enhance brand reputation, andpromote the upgrading of healthyair supply technology for industryproducts.
| Technical research and application of high conversion refrigeration system in ultra-low | On the basis of the existing series of ultra-low temperature products, further develop new throttling technology to realize the controllable and stable cooling of the system; | Product application stage | Mass production and sales achieved | Carry out continuous optimization on the performance of the Company's existing ultra-low temperature products, which will help consolidate the Company's |
| temperature refrigerated storage box | Research on and develop compressor initial pressure relief and intermediate air supply technology to achieve the optimal operating conditions of the whole process and higher product reliability; Research on and develop more environmentally friendly cryogenic mix refrigerants. | leading edge in the field of ultra-low temperature products after the project is completed. | ||
| Research and application of intelligent air circulation and isolation technology in biosafety cabinet | The project starts with the air circulation and isolation technology, combined with the self-developed control system and ergonomic design, to provide all-round biosafety protection for laboratory personnel, article operation and experimental environment. The products can be widely used in medical and health care, disease prevention and control, food safety, biopharmaceuticals, environmental testing and various biological laboratories. | The products have been mass-produced and continuously upgraded. | Mass production and sales achieved | Meet the market demand for sterility of sample operation space, which is conducive to the Company's business expansion in new fields, new industries and new markets; Improve the layout of the Company's industrial chain. |
| Laboratory biosafety technology - Centrifugal technology research and product line expansion | Aiming at the needs of centrifuge work in laboratory sample pretreatment, the project designs and develops a series of centrifuge products in freezing laboratory, and optimizes and upgrades the structure, control system and drive system of the centrifuge to improve the overall performance of the centrifuge and meet the users' pursuit of efficient, stable and reliable equipment. | The first product of the series has been officially launched, and new products of centrifuge business have been expanded. | Mass production and sales achieved | Strengthen the layout of centrifuge industry and enhance the Company's market competitiveness; By providing diversified centrifuge products, attract more potential customers and meet users' pursuit of efficient, stable and reliable equipment; Promote the Company's technological innovation and industrial upgrading, and enhance its profitability and market share. |
| MC-N10 Tea Bar Machine Project | Develop a tea bar machine with brand-new appearance and strontium-rich mineralization function; At the same time, it has the functions of voice Bluetooth, antibacterial pipeline and backrest | The development was completed in April, 2024, and the product has been | The strontium-rich filter element has a strontium content of more than 0.2mg/L in its service life, reaching the national natural strontium mineral water standard | The first brand-new product of Fresh Water Series, which has sold 150,000 sets in 9 months, laying a solid foundation for building our Fresh Water Series products. |
| free installation. | launched. | (GB8537 natural mineral drinking water). | ||
| MC-H50 Tea Bar Machine Project | A tea bar machine with a transparent screen and a strontium-rich mineralized filter element is developed based on the box mold of MY-AJ15, a mass-produced model, and some new molds of backrest. | The development was completed in September , 2024, and the product has been launched. | It uses the MY-AJ15 box mold, which has been mass-produced, with the backrest displayed on a transparent screen, and a strontium-rich mineralized filter element. | It expands the product model of large box with 400mm width, and makes maximum use of the existing box mold. |
Company's R & D personnel situation
| 2024 | 2023 | Change proportion | |
| Number of Research and Development persons (persons) | 1,781 | 1,667 | 6.84% |
| Proportion of Research and Development persons | 16.90% | 15.07% | Increase by 1.83 percentage points |
| Academic structure of R&D personnel | |||
| Undergraduate | 1,160 | 1,217 | -4.68% |
| Masters | 146 | 113 | 29.20% |
| Age composition | |||
| Under 30 | 570 | 464 | 22.84% |
| 30~40 | 668 | 630 | 6.03% |
Investment of R&D
| 2024 | 2023 | Change proportion | |
| Investment for R&D (RMB) | 801,412,208.23 | 702,362,069.24 | 14.10% |
| R&D investment/Operating revenue | 2.80% | 2.88% | -0.08% |
| Capitalization of R&D investment (RMB) | 207,422,076.26 | 147,821,273.96 | 40.32% |
| Capitalization of R&D investment/R&D investment | 25.88% | 21.05% | 4.83% |
Reasons and effects of significant changes in composition of the R&D personnel
□Applicable√ Not applicable
Reasons for significant changes in the proportion of total R&D investment in operating revenue from theprevious year
□Applicable√ Not applicable
Reasons and rationality of the major changes of the capitalization rate of R&D investment
□Applicable√ Not applicable
(v) Cash flow
In RMB
| Item | 2024 | 2023 | Increase/decre |
| ase y-o-y (+,-) | |||
| Subtotal of cash in-flow from operation activity | 32,666,460,604.66 | 26,188,015,669.10 | 24.74% |
| Subtotal of cash out-flow from operation activity | 28,696,203,386.70 | 24,115,106,238.63 | 19.00% |
| Net cash flow from operation activity | 3,970,257,217.96 | 2,072,909,430.47 | 91.53% |
| Subtotal of cash in-flow from investment activity | 13,768,606,653.54 | 1,646,745,380.23 | 736.11% |
| Subtotal of cash out-flow from investment activity | 15,464,094,400.84 | 1,920,380,073.58 | 705.26% |
| Net cash flow from investment activity | -1,695,487,747.30 | -273,634,693.35 | -519.62% |
| Subtotal of cash in-flow from financing activity | 2,602,742,833.92 | 2,299,657,561.65 | 13.18% |
| Subtotal of cash out-flow from financing activity | 3,311,631,839.18 | 1,841,587,354.21 | 79.82% |
| Net cash flow from financing activity | -708,889,005.26 | 458,070,207.44 | -254.76% |
| Net increased amount of cash and cash equivalent | 1,584,920,797.49 | 2,270,781,048.58 | -30.20% |
Main reasons for y-o-y major changes in aspect of relevant data
√Applicable □ Not applicable
Major changes in net cash flow from operation activity mainly because the cash paid for good procurement andreceived services during the period increased from a year earlier.The large change in net cash flow from investment activities is mainly due to the year-on-year increase incash paid by the Company for investment.
The large change in net cash flow generated by fund-raising activities is mainly due to the year-on-yearincrease in cash paid by the Company to repay debts in this period.Explanation on reasons for the significant differences between the net cash flow arising from operationactivities in the Period and net profit of last year
√Applicable □ Not applicable
It is mainly due to the increase in operating receivables and operating payables at the end of the reporting periodcompared with the beginning of the year.V. Analysis of the non-main business
√Applicable □ Not applicable
In RMB
| Amount | Ratio in total profit | Note | Whether be sustainable (Y/N) | |
| Investment income | 35,709,856.70 | 4.39% | Mainly due to the interest income obtained by the company during the holding period of the debt investment | No |
| Gains/losses from fair value changes | -87,184,652.30 | -10.72% | Mainly due to the change in the fair value of the company's irrevocable orders and foreign exchange contracts in this period | No |
| Asset impairment | -116,583,058.63 | -14.33% | Mainly due to the company's provision for inventory depreciation and intangible asset impairment losses in this period | No |
| Non-operation income | 10,938,462.86 | 1.34% | Mainly due to the year-on-year increase in the company's income from liquidated damages and other income in this period | No |
| Non-operation expenditure | 11,928,863.23 | 1.47% | Mainly due to the company's non-current asset scrapping losses and relocation losses in this period | No |
VI. Analysis of assets and liability(i) Major changes of assets composition
In RMB
| Year-end of 2024 | Year-begin of 2024 | Ratio changes(+,-) | Note of major changes | |||
| Amount | Ratio in total assets | Amount | Ratio in total assets | |||
| Monetary fund | 10,492,450,750.61 | 43.77% | 8,842,623,235.72 | 45.03% | -1.26% | Mainly due to the decrease in the proportion caused by the increase in the total assets of the Company in this period |
| Account receivable | 1,527,978,374.48 | 6.37% | 1,680,303,240.09 | 8.56% | -2.19% | Mainly due to the company's recovery of customer payments and increase in total assets in this period, resulting in a decrease in the proportion |
| Contract assets | 2,763,866.97 | 0.01% | 13,261,690.62 | 0.07% | -0.06% | No major changes. |
| Inventory | 3,514,968,009.34 | 14.66% | 2,022,749,908.45 | 10.30% | 4.36% | Mainly due to the company's business growth and increase in inventory reserves in this period |
| Investment real estate | 66,720,850.69 | 0.28% | 50,920,487.71 | 0.26% | 0.02% | No major changes. |
| Long-term equity investment | 81,511,146.82 | 0.34% | 112,745,811.75 | 0.57% | -0.23% | Mainly due to the company's recovery of investment in joint ventures in this period |
| Fix assets | 2,218,850,660.12 | 9.26% | 2,291,776,177.80 | 11.67% | -2.41% | Mainly due to the increase in the company's total assets in this period, resulting in a decrease in the proportion |
| Construction in progress | 97,807,983.40 | 0.41% | 69,920,839.20 | 0.36% | 0.05% | No major changes. |
| Right-of-use assets | 113,784,190.78 | 0.47% | 35,146,281.21 | 0.18% | 0.29% | Mainly due to the company's new factory leasing in this period |
| Short-term loans | 766,747,286.01 | 3.20% | 1,134,102,419.03 | 5.77% | -2.57% | Mainly due to the company's repayment of bank loans in this period |
| Year-end of 2024 | Year-begin of 2024 | Ratio changes(+,-) | Note of major changes | |||
| Amount | Ratio in total assets | Amount | Ratio in total assets | |||
| Contract liability | 609,737,871.24 | 2.54% | 405,733,638.26 | 2.07% | 0.47% | Mainly due to the increase in the company's advance payment for goods in this period |
| Long-term loans | 108,000,000.00 | 0.55% | -0.55% | Mainly due to the company's repayment of bank loans in this period | ||
| Lease liability | 101,826,405.91 | 0.42% | 28,976,808.54 | 0.15% | 0.27% | Mainly due to the company's new factory leasing in this period |
Foreign assets account for a relatively high proportion
□Applicable √Not applicable
(ii) Assets and liability measured by fair value
√Applicable □ Not applicable
In RMB
| Item | Amount at the beginning period | Changes of fair value gains/losses in this period | Accumulative changes of fair value reckoned into equity | Devaluation of withdrawing in the period | Amount of purchase in the period | Sales in the period | Other changes | Amount at end of the period |
| Financial assets | ||||||||
| 1.Trading financial assets (derivative financial assets excluded) | 13,070,000,000.00 | 13,070,000,000.00 | ||||||
| 2. Derivative financial assets | 39,236,447.63 | 32,773,626.80 | 72,010,074.43 | |||||
| 3. Accounts receivable financing | 1,641,858,740.34 | -124,870,786.51 | 1,516,987,953.83 | |||||
| 4. Other non current financial | 674,139,515.48 | 4,172,388.96 | 2,217,600.00 | 676,094,304.44 | ||||
| Item | Amount at the beginning period | Changes of fair value gains/losses in this period | Accumulative changes of fair value reckoned into equity | Devaluation of withdrawing in the period | Amount of purchase in the period | Sales in the period | Other changes | Amount at end of the period |
| assets 3. Accounts receivable financing | ||||||||
| Subtotal of financial assets | 2,355,234,703.45 | 36,946,015.76 | 13,070,000,000.00 | 13,072,217,600.00 | -124,870,786.51 | 2,265,092,332.70 | ||
| The above total | 2,355,234,703.45 | 36,946,015.76 | 13,070,000,000.00 | 13,072,217,600.00 | -124,870,786.51 | 2,265,092,332.70 | ||
| Financial liabilities | 32,229,012.86 | 124,130,668.06 | 156,359,680.92 |
Other changes:
Other changes in receivable financing are caused by the increase of notes receivable aimed at both collectingcontract cash flow (collection) and selling (endorsement or discount).Whether there have major changes on measurement attributes for main assets of the Company in report periodor not
□Yes √ No
(iii) Assets right restricted ended as reporting periodEnded as the reporting period, the Company has no major assets been closed down, detain, freeze or pledge andguarantee. As for other assets have restriction on rights found more in relevant content of “26. Assets withrestricted ownership or use rights” in “V. Note of consolidate financial statement” carried under Section X.Financial ReportVII. Investment analysis(i) Overall situation
√Applicable □ Not applicable
| Investment in the reporting (RMB) | Investment in the same period of last year ( RMB) | Changes |
| 475,033,242.38 | 45,000,000.00 | 955.63% |
(ii) The major equity investment obtained in the reporting period
√Applicable □ Not applicable
In RMB
| Name of invested | Principal business | Method of investment | Amount of investment | Shareholding ratio | Capital sources | Partners | Term of investment | Type of products | Status as of the balance sheet date | Expected return | Current investment profit and loss | Whether involved in a lawsuit(Y/N) | Date of disclosure (if applicable ) | Index of disclosure (if applicable ) |
| Sichuan Changhong Intelligent Air Conditioning Technology Co., Ltd. | General items: Technical service, technical development, technical consultation, technical exchange, technology transfer and technology popularization; Software development; Software sales; Information technology consulting services; Industrial Internet data service; Information system integration service; Electronic component manufacturing; R&D of special electronic materials; Integrated circuit manufacturing; R&D of home appliances; Manufacturing of home appliances; Sales of home appliances; Installation service of home appliances; Sales of refrigeration and air conditioning equipment; Manufacturing of | Newly established | 100,000,000.00 | Indirect holding of 100% | Self-fund | N/A | Long-term | Manufacturing and sales of frequency conversion drive control panel in air | During the reporting period, it invested RMB 100 million | Not applicable | -1,982,983.06 | No | March 15,2024 | Juchao Website www.cninfo.com.cn（2024-006) |
| refrigeration and air conditioning equipment; Sales of electronic products; Manufacturing of special electronic materials; Sales of spare parts for home appliances; Sales of metal materials; Manufacturing of communication equipment; Non-residential real estate lease; General cargo storage services (excluding dangerous chemicals and other items that need permission and approval); Import and export of goods. (Except for items that are subject to approval according to law, business activities shall be independently carried out according to law by virtue of business license) | conditioning industry (including special air conditioners) | |||||||||||||
| Hefei Changhong Industry Co., Ltd. | General projects: Manufacturing of electronic component; Retail of electronic components; Sales of electronic products; Manufacturing of household appliances; Sales of household appliances; Labor service (excluding labor dispatch); Non-residential real estate lease; Mechanical equipment lease; Import and export of goods; Import and export of technology; R&D of household appliances; Mold sales; Mold manufacturing (except for licensed business, projects that can be operated independently according to law and are not prohibited or restricted by laws and regulations) | Purchase | 375,033,242.38 | Total direct and indirect shareholding of 100% | Self-fund | N/A | Long-term | Manufacturing and sale of household appliances | Completed equity-to-price payment and equity transfer | Not applicable | 2,003,295.34 | No | October 12,2024, Cobober 14, 2024, November 30,2024, November 22, 2024 | Juchao Website www.cninfo.com.cn（2024-064) |
| Total | -- | -- | 475,033,242.38 | -- | -- | -- | -- | -- | -- | -- | 20,312.28 | -- | -- | -- |
(iii)The material non-equity investment in the reporting period
□ Applicable √Not applicable
The Company invested RMB 88 million in the refrigerator front-end capacity improvement project of Hefei manufacturing base. For details, please refer to Section VI"XIII. Explanation of Other Important Matters".
1. As of the end of the reporting period, the project is still under construction and not completed, and the amount of related project contract is more thanRMB 200 million.
□ Yes √ No □ Not appli8cable
(iv)Financial assets investment
1. Securities investment
□ Applicable √ Not applicable
The Company had no securities investment in the reporting period.
2.Derivative investment
√ Applicable □ Not applicable
(1) Derivatives investment for hedging purposes during the reporting period
√ Applicable □ Not applicable
In RMB 10,000
| Type | Initial investment | Amount at the beginning period | Profit and loss of fair value change in the current period | Changes in the cumulative fair value included in the equity | Amount purchased in the reporting period | Amount sales in the reporting period | Investment amount at period-end | Ratio of investment amount at period-end in net assets of the Company at period-end |
| Forward foreign exchange contract | 630,614.02 | 332,515.07 | -9,135.70 | 0 | 1,094,850.13 | 932,563.85 | 496,923.87 | 81.65% |
| Total | 630,614.02 | 332,515.07 | -9,135.70 | 0 | 1,094,850.13 | 932,563.85 | 496,923.87 | 81.65% |
| Specific principle of the accounting policy and calculation for derivatives in the Period compared with last period in aspect of major changes | Not applicable | |||||||
| Description of actual profit and loss during the reporting period | During the reporting period, the Company confirmed the income from derivatives investment of RMB-21.2252 million. | |||||||
| Description of hedging | During the reporting period, the Company adhered to the principle of exchange rate risk neutrality, used forward foreign exchange contracts as hedging tools, and signed forward foreign | |||||||
| effect | exchange contracts according to the foreign exchange receipt amount predicted by sales and the target cost exchange rate. The delivery period matched with the predicted return amount, and the agreed delivery amount matched with the predicted return amount to avoid the risks caused by exchange rate fluctuations. The cash flow changes in the hedging tools during the reporting period can offset the cash flow changes in the hedged items caused by exchange rate fluctuations, which met the requirements of hedging effectiveness and achieved the hedging objectives. |
| Capital resource | Own fund |
| Risk analysis and controlling measures for derivatives holdings in the Period (including but not limited to market risk, liquidity risk, credit risks, operation risk and law risks etc.) | Risk analysis: 1. Market risk: domestic and international economic situation changes may lead to exchange rate fluctuations, forward foreign exchange transactions are under certain market risk. Forward foreign exchange business is aiming to reducing impact on corporate profits by foreign exchange settlement and sale prices, exchange rate fluctuations. The Company will follow up the exchange fluctuation, on the basis of target rate determined from the business, relying on the research of the foreign currency exchange rates, combined with prediction of consignments, and burdening ability to price variations due to exchange rate fluctuations, then determine the plan of forward foreign exchange contracts, and make dynamic management to the business, to ensure reasonable profit level. 2. Liquidity risk: all foreign exchange transactions are based on a reasonable estimate of the future import and export business, to meet the requirements of the trade authenticity. In addition, forward foreign exchange transactions are processed with bank credit, will not affect liquidity of company funds. 3. Bank default risk: if cooperative banks collapse within the contract time, the Company will not be able to transact the original foreign exchange contracts with contract price, which leads the risk of income uncertainty. So the Company chose five state-owned banks, the Chinese-funded banks in shareholding enterprise as Everbright Bank, Industrial Bank and the foreign-funded banks as UOB, OCBC, BEA etc. to conduct the trading of foreign exchange capital. These banks share a solid strength and management whose failure and the risk of loss may bring to the Company is very low. 4. Operational risk: improper operation of the person in charge of forward foreign exchange transactions may cause related risk also. The Company has formulated related management system which defines the operation process and responsibility to prevent and control risks. 5. The legal risks: unclear terms based in contract signed with banks for related transactions may lead legal risks when forward foreign exchange transactions are processing. The Company will strengthen legal review, and choose good bank to carry out this kind of business as to risk control. |
| Invested derivative products have changes in market price or fair value in the Period, as for analysis of the fair value of derivatives, disclosed specific applied methods and correlation assumption and parameter setting | The Company determines fair value in accordance with the Chapter VII “Determination of Fair Value” carried in the Accounting Standards for Business Enterprises No.22 - Recognition and Measurement of Financial Instruments. Fair-value is basically obtained according to prices offered by bank and other pricing services. While fair-value of derivatives is mainly obtained according to the balance between prices given by outstanding contracts and forward prices given by contracts signed during the reporting period with bank. The differences are identified as trading financial assets and liabilities. |
| Lawsuit involved (if applicable) | Not applicable |
| Disclosure date for approval from the Board for investment of derivatives (if applicable) | March 30,2024 |
| Disclosure date for approval from board of shareholders for investment of derivatives (if applicable) | April 26,2024 |
(2）Derivative investments for speculation during the reporting period
□ Applicable √ Not applicable
The Company had no derivative investment in the reporting period.(v) Application of raised proceeds
√ Applicable □ Not applicable
NilVIII. Sales of major assets and equity(i) Sales of major assets
□ Applicable √ Not applicable
No major assets are sold in the period(ii) Sales of major equity
□ Applicable √ Not applicable
IX. Analysis of main holding company and stock-jointly companies
√ Applicable □ Not applicable
(i) Particular about main subsidiaries and stock-jointly companies net profit over 10%
In RMB
| Company name | Type | Main business | Register capital | Total assets | Net assets | Operating revenue | Operating profit | Net profit |
| Zhongke Meiling Cryogenic Technology Co., Ltd. | Subsidiary | Research and development, manufacturing and sales of ultra-low temperature freezer | 96,730,934 | 747,326,052.54 | 611,741,106.18 | 295,773,281.94 | 18,785,418.13 | 18,087,029.57 |
| Jiangxi Meiling Electric Appliance Co., Ltd. | Subsidiary | Manufacturing of refrigeration and freezer | 50,000,000 | 419,664,286.58 | 169,822,325.58 | 907,613,727.78 | 12,438,813.90 | 12,341,622.60 |
| Mianyang Meiling Refrigeration Co., Ltd. | Subsidiary | Manufacturing of refrigeration and freezer | 100,000,000 | 174,120,831.37 | 125,809,187.80 | 394,653,666.78 | 3,948,567.20 | 3,885,488.05 |
| Sichuan Changhong Air-conditioner Co., Ltd. | Subsidiary | R&D, manufacturing and domestic sales of air-conditioning | 850,000,000 | 6,802,632,353.56 | 1,436,329,167.70 | 10,128,734,269.01 | 239,880,454.52 | 215,866,193.27 |
| Zhongshan Changhong Electric Co., Ltd. | Subsidiary | R&D, manufacturing and foreign sales of air-conditioning | 334,000,000 | 4,170,891,500.45 | 526,881,778.44 | 5,640,129,428.53 | 198,772,910.59 | 174,173,856.42 |
| Hefei Meiling Group Holdings Limited | Subsidiary | Sales of white goods | 80,000,000 | 1,205,253,847.15 | -225,069,459.40 | 5,511,639,410.59 | 68,182,966.50 | 67,066,953.66 |
| Hefei Changhong Meiling Life Appliances Co., Ltd. | Subsidiary | R&D and sales of household appliances, kitchen appliances and small home appliances | 50,000,000 | 679,748,529.06 | 179,209,903.42 | 1,335,609,757.73 | 51,797,109.67 | 39,416,387.36 |
(ii) Subsidiary obtained and disposed in the period
√ Applicable □ Not applicable
| Company name | The method of obtaining and disposing subsidiaries during the report period | The influence to the whole production and performance |
| Sichuan Changhong Intelligent Air Conditioning Technology Co., Ltd | Investment establishment | The wholly-owned subsidiary of the company, Changhong Air Conditioning, invested 100 million yuan to establish. The establishment of the company aims to further enhance key core technological capabilities and asset utilization, improve electronic product processing services and quality assurance capabilities, and engage in related businesses centered on manufacturing and selling variable frequency drive control boards for the air conditioning industry (including special air conditioners). It has little impact on the overall production, operation, and performance of the company. |
| Hefei Changhong Industrial Co., Ltd. | Business consolidation under the same control | Minor effect on the overall production and operation and performance of the company |
(iii) Description of the holding company and stock-jointly companies
□ Applicable √ Not applicable
X. Structured entity controlled by the Company
□ Applicable √ Not applicable
XI. Prospects for the future development of the company
(I) Macro-environmental analysisDomestic policies continue to promote consumption upgrading and green transformation, accelerate thedevelopment of green smart home appliance market through trade-in and consumption subsidies, and create growthspace for high-end, intelligent and energy-saving products. At the same time, technological progress in energyconservation and emission reduction has helped popularize environmentally-friendly home appliances andpromoted the industry to upgrade to a low-carbon direction. However, the home appliance industry still facesmultiple challenges, such as weak consumer demand, shrinking real estate market and demographic changes, plusthe fierce competition in the stock market, resulting in significant overall pressure on the industry.
Institutions such as the International Monetary Fund predict that the global economic growth rate will achievea moderate recovery in 2025, but with significant regional differences; In terms of trade pattern, while themultilateral trading system faces challenges, the role of regional trade agreements has become increasinglyprominent, against a backdrop of persistent uncertainties stemming from trade protectionism and geopoliticalconflicts. Technological competition is driving the home appliance industry toward energy-efficient andenvironmentally-friendly transformation, and elevating requirements for product technical standards; In terms ofpolicy, global monetary policy adjustments and fiscally balanced approaches may impact both the costs and marketdemand for home appliance exports. Other factors including exchange rate volatility and raw material priceuncertainties will further influence home appliance export.
Overall, the Chinese home appliance sector must navigate multiple challenges in 2025, and companies need todemonstrate operational agility in adapting to environmental shifts while enhancing product competitiveness toseize opportunities.
(II) Industrial environment analysis
1. Refrigerator (Freezer) industry
The refrigerator industry is constantly developing in terms of technological innovation, green development,intelligence, personalization and health, and green energy saving has become an important development direction.
Domestic Market: In 2025, China will continue its trade-in policy, though refrigerator demand is expected toremain stable. As such policy in 2024 already absorbed some pent-up demand, the overall refrigerator market isprojected to show weaker demand in 2025. Nevertheless, the trade-in policy will still drive product mix upgrades,energy efficiency improvements, and accelerated growth in the built-in refrigerator industry. With deeper policypenetration into lower-tier markets, county-level regions will unlock greater potential, likely boosting sales inthird-tier and fourth-tier cities.
Export Market: Global demand will continue to expand, with developed markets showing recovery-drivengrowth while emerging markets, particularly in South America, will experience rapid expansion. This growingadoption in emerging economies serves as a key driver for sustained export growth. The implementation ofupdated EU standards, along with impending upgrades of national standards in parts of South America and theMiddle East, will accelerate global demand for higher-tier products. The new standards and regulations willpromote rapid upgrading of industrial structure, accelerate the technological R&D capabilities of energy saving,frequency conversion and large volume of products, focus on scientific management of carbon footprint, promotethe upgrading of green home appliance industry, and increase the R&D and application of low-carbon production,recyclable and degradable environmental protection materials. This will not only bring new industrial opportunities,but also pose challenges to enterprises.
2. Air conditioning industry
In the stock market competition, the air-conditioning industry will develop in the green, low-carbon, intelligent,healthy and personalized direction. Enterprises need to make continuous efforts in technological innovation,product function optimization and brand building to adapt to market changes and policy requirements.
Domestically, the domestic air-conditioning industry is now in the era of stock competition, and the brandconcentration has been further improved. Leading enterprises continue to consolidate their market share by virtueof their technological advantages and scale effect. At the same time, some emerging brands focusing on intelligentand environmental protection technologies enter the market by virtue of their intelligence, high cost performanceand technological advantages, and promote the diversification of the competitive landscape.
In terms of exports, the global attention to energy conservation and environmental protection has prompted theair-conditioning industry to accelerate the transformation to green and low carbon, and the green and low carbonpolicy has become increasingly strict. At the same time, consumers' demand for air conditioning functionsbecomes increasingly diversified. In addition to basic functions, they pay more attention to functions such as airpurification and intelligent control. Therefore, enterprises need to make constant innovation and optimize productfunctions to adapt to changes in market demand. Judging from the competitive situation, the competition in theindustry is becoming more and more fierce, including not only the competition between traditional air-conditioning
enterprises, but also the cross-sector competition from other home appliance technology enterprises. Enterprisesneed to constantly improve product quality, reduce costs, and strengthen brand building and after-sales service toenhance their own market competitiveness. In addition, with the promotion of the "Belt and Road Initiative" andthe development of cross-border e-commerce, China's air-conditioning enterprises will further expand theinternational market and increase their global market share.
3. Washing machine industry
The Chinese economy has entered an era of low effective demand, with the washing machine marketexperiencing overall growth stagnation. The 2024 national subsidy policy stimulated partial demand ahead ofschedule, resulting in limited short-term sales growth in 2025. Judging from the retained number by 100households, incremental demand from rigid-need buyers remains insufficient, shifting main market demand to"Replacement" purchases. In 2025, the extended trade-in policy will meet the trade-in demand through structuralupgrading and product innovation. In the future, enterprises need to leverage this policy while aligning withtechnological trends including AI integration, flush-embedded designs, large-capacity models, high energyefficiency, and growing demand for washer-dryer combos, to deliver scenario-based solutions for users.In terms of export, the global washing machine market rebounds moderately, but with limited growth rate.With the implementation of upgraded EU standards, green and energy-efficient technologies have begun todominate global washing machine product upgrades. In developed markets represented by Europe and NorthAmerica, against the backdrop of elevated technological convergence, improved product intelligence, and enhancedscenario integration, manufacturers are progressively launching premium high-efficiency drum models featuringenergy-saving, intelligence, and high-performance, to elevate product profitability by technology. Meanwhile,emerging markets, mainly in Southeast Asia, Latin America, and Africa remain highly price-sensitive, still mainlywith rigid demand in low-end and middle-end products, resulting in a volume-driven yet intensely competitivemarket landscape.
4. Major kitchen appliance and small home appliance industry
Under the dual drivers of macroeconomic recovery and consumption upgrading, the major kitchen applianceand small home appliance industry is demonstrating diversified development trends. The trade-in policy hasstimulated consumption while strengthened energy efficiency standards and environmental regulations areaccelerating the industry's green and intelligent transformation.
In the major kitchen appliance market, traditional essential products like range hoods and cooktops maintainstable demand, though integrated cookers have seen retail sales decline due to the sluggish real estate market. Asan emerging category, dishwashers have become a market highlight with their premiumization driven bytechnological upgrades. The deep integration of AI has enhanced health management and smart adjustmentfunctions. Amid environmental and energy-saving trends, the application of inverter technology and recyclablematerials has reduced energy consumption. In the future, the major kitchen appliance market will increasinglyprioritize product personalization, differentiation, and intelligence, requiring continuous innovation fromenterprises to meet consumers' demand for high-quality life. Environmental sustainability and energy efficiency
will become critical industry direction, with brand concentration expected to intensify further as leading enterprisesleverage their technological and brand advantages to capture greater market share.The small home appliance market continues its "slow-growth" trend, with traditional categories experiencingdecelerated expansion while emerging segments, particularly tea bar machines and cleaning appliances, arebecoming primary growth drivers through their health-oriented positioning and intelligent technology. The IoTtechnology promotes the interconnection of products, and innovative products such as intelligent tea bar machinesand intelligent electric fans are constantly emerging.Emerging e-commerce platforms, such as Douyin (Tik Tok), have become an important engine for the growthof small home appliance market, driving brands to grow against the trend. However, the rising cost of rawmaterials and the competitive pressure of homogenization still exist, and the concentration of head brands hasfurther improved. In the future, the small home appliance market will develop in the direction of personalizedcustomization and scene sales to meet the diverse needs of consumers. Intelligent, healthy and environmentalprotection will become the core direction of product innovation, and enterprises need to strengthen technologicalR&D and brand building to cope with market competition.
5. Biomedical industry
Biomedical industry is closely related to human life and health. With the improvement of economic level andthe enhancement of medical care awareness, coupled with the continuous acceleration of population aging, thedemand for medical health among residents around the world is increasing, and the medical expenditure is on therise. China is also prioritizing public health as a strategic development imperative. Furthermore, bolstered bynational policies such as "vigorously developing new quality productive forces," "domestic equipment substitution"and "Healthy China Initiative", the life science instruments sector is positioned for sustained long-term growth.(III) Business Plan for 2025
1. Business policy
The Company will drive industrial development through innovation, strengthen industrial synergy throughresource integration to solidify market foundations, accelerate corporate growth through internal-externalconvergence, develop new quality productive forces and advance digital and intelligent transformation, and achievehigh-quality development the Company. In 2025, the Company aims to realize dual growth in both scale andprofitability, maintaining a virtuous development trend of profitable expansion.
(1) Innovation drives industrial development
Enhance industrial competitiveness around four aspects: technological innovation, product innovation,manufacturing innovation and management innovation. In terms of technological innovation, increase technicalinput, empower industries, and focus on technological research that brings added value to product competitiveness.In terms of product innovation, adhere to productism, with leading products, create super single products, helpcomprehensively improve "appearance, quality, price and experience" and enhance brand value; In terms ofmanufacturing innovation, accelerate the promotion of intelligent manufacturing; In terms of management
(2) Resource integration helps industrial matrix
Build an industrial matrix dominated by white major home appliances, and enhance the ability of fourindustrial matrices around kitchen solutions, living solutions, air solutions and biomedical solutions. Help theestablishment and development of industrial matrix through resource integration.
(3) Industrial synergy consolidates market foundation
Make use of the solid customer base and strong market awareness of the existing international market,strengthen industrial synergy, further consolidate the market base and broaden the industrial matrix.
(4) Internal and external integration accelerates the company development
Conduct integration from outside to inside, form scale and benefits in the international markets, investresources to participate in domestic market competition, improve the overall technology, products, manufacturingand other capabilities of the industry, and then release it overseas. After the industrial capacity is further improved,upgrade domestic brand matrix and international brand matrix, achieve internal and external integration, andaccelerate the Company's development.
2. Market strategy
(1) Refrigerators (freezers)
In domestic market, amid the normalization of national subsidies, the Company will seize four keyopportunities: product enhancement, category synergy, retail transformation, and national subsidy penetration;Uphold the dual principles of "customer-center" to meet B2B product requirements and "user-center" to fulfill B2Creplacement demand, while adhering to three guiding principles: profitability orientation, problem-solvingorientation, and target orientation; Through four implementation pathways, integrate production, research and salesto consistently develop hero products and achieve traffic monetization, feature reinforcement, operational efficiency,and P&L optimization; Refine operational channels by consolidating foundational channel capabilities,aggressively expanding e-commerce channels, enhancing KT channel profitability, and optimizing lower-tierchannel efficiency through integration; Upgrade market regions by categories, establish brand leadership in basemarkets, pursue scale maximization with improved profitability in revitalized markets, achieve substantialprofitability expansion at maintained scale in improved markets, and accelerate infrastructure development inopportunity markets; Focus on brand building, elevate brand with products through online and offline integration,promote brand with core customers in core areas, and vigorously promote brand building.
In overseas markets, the Company will closely grasp the upgrading trend of global consumer demand inproduct layout, and mainly promote the trend products such as "air cooling, frequency conversion, multi-door,energy saving", and build a tiered product matrix of "premium high-end, value-driven mid-range, and efficiententry-level offerings" to precisely meet diversified market demands; Build a user-centered all-round marketingsystem, improve the demand fit of large customers and the efficiency of customer cooperation, and further enhancecustomer loyalty; In terms of business development, deepen cooperation to tap the potential of the stock market,consolidate the existing business foundation, focus on the layout of high-growth emerging markets, actively explore
incremental opportunities, and achieve sustained growth in market share; Deeply cultivate the brand base market,and make efforts from multiple dimensions, such as in-depth channel expansion, product matrix improvement,marketing promotion capability improvement and talent echelon construction, to comprehensively enhance brandcompetitiveness, accelerate the scale development of overseas independent brand business, and create a brandimage with international influence.
(2) Air conditioners
In the domestic market, the Company will strengthen the user experience and differentiated design based on AItechnology, continue to create two product business cards, namely, "DustFree" and "LivingDining Pro", launch"Strategic hero SKUs", and continue to promote the "Panda Lazy" hero products to create premium mid-range brandofferings. It will increase market investment, improve brand awareness and reputation through event marketing,new media seeding and other ways. It will adhere to regional differentiated management, and continue to promotethe implementation of special regional strategies such as Sichuan-Chongqing Base Area Construction Plan andSecond Base Area Market Construction Plan. It will strengthen the improvement of service capability around usersquickly and directly, and improve user satisfaction.In overseas markets, the Company will continue to practice the concept of "profitable scale growth andprofitable cash flow growth", adhere to brand priority, increase market development in base areas, and vigorouslydevelop regional brand agents; Preserve the quantity, seek increment, focus on superior channels, expand newmarkets, and carry out key customer penetration; Remain attuned to market trends by elevating productpremiumization, driving innovation, and advancing inverter technology adoption; Adhere to business-oriented andcustomer-centered principle, and constantly improve product quality, customer service ability and customersatisfaction.
(3) Washing machines
In the domestic market, the Company will insist on the product-oriented principle, promote quality andhigh-end, and continue to build good products for the market and users. For drum washing machine products, theCompany will upgrade the mid-range products and break through the high-end products; Expand the flat-embeddedappearance of "As Hand Washing" series products and enhance the competitiveness of mid-range products; Extendthe "Hercules" pulsator products, lay out Hercules 2.0 upwards, continuously improve energy efficiency and createa competitive advantage; Strengthen e-commerce channel capacity building and product layout, achieve scalebreakthrough, and at the same time focus on offline channels, and ensure the steady growth of industrial scale basedon base market construction.
In the overseas market, the Company will insist on the of internal and external integration, introduce newproducts and technologies in the domestic market, optimize the platform and expand products around color screendrum products, variable frequency pulsator products, large pulsator products and washing and drying machines, layout key areas, focus on key customers and expand KA customers, and build a leading brand of drum washingmachine worldwide with "color screen + flat embedded" dual drive, by increasing appearance supply and upgradingenergy efficiency to meet differentiated needs.
(4) Major kitchen appliances and small home appliances
The industry adheres to the business strategy of "transformation, focus and efficiency improvement". At theretail end, the Company will optimize and upgrade around "people, goods, market and promotion", and expand themarket through online and offline integration; In terms of industrial synergy, it will deepen internal systemcooperation, strengthen domestic business synergy, and seize the national subsidies; At the product level, with theguidance of "expanding cooking solutions, consolidating water applications, and developing environmentalproducts", it will create high-quality hit products; and improve service efficiency and adhere to the concept of"market-oriented, customer-centered".
(5) Biomedical products
The Company will focus on the field of life sciences, adhere to the business philosophy of "technology-based,product-based, market-oriented and customer-centered", and based on "focusing on the sample ecology, verticallydeepening the whole chain of automation; Based on the life science, and horizontally expanding the field oflaboratory general equipment", continue to promote the construction of market channels, expand the product matrix,enhance operational capabilities, and strive to improve operational efficiency.
Focusing on the market, the Company is customer-centered, market-oriented, growth-oriented, and internaland external synergy to promote the organization to achieve leap-forward development with equal emphasis onscale and quality. In terms of vertical and horizontal expansion, the Company will implement "focusing on thesample ecology, vertically deepening the whole chain of automation; Based on the life science, and horizontallyexpanding the field of laboratory general equipment", deeply cultivate low-temperature storage products, expandthe lineup of new products, realize product synergy, gradually realize various application scenario solutions, andcomprehensively enhance product strength. In terms of operational efficiency, the Company will attach importanceto the improvement of operational quality and efficiency and strengthen the driving force of the system. At the sametime, the Company will establish an open and innovative organizational mechanism, attract excellent talents andpartners, build an ecosystem together, and create a new benchmark in the field of life sciences.
The above business plans and business objectives do not represent the listed company's profit forecast for 2025.Whether they can be realized depends on many factors such as changes in market conditions and the efforts of themanagement team. There is great uncertainty, which shall be especially noted by the investors.
(IV) Possible risks and countermeasures
Facing the objective factors such as more intense competition in the home appliance market, the operatingenvironment of enterprises will be even worse. In 2025, the Company will face risks such as intensified industrycompetition, exchange rate fluctuation, price fluctuation of bulk materials, trade friction and geopolitical influence.
1.Risk of industry competition: The risk of domestic industry demand decline
The domestic major home appliance market is currently in a stage of stock competition, characterized bysevere product homogenization and a lack of new consumption stimuli. While the appliance trade-in policy partiallyunleashed consumer demand in 2024, its industry-boosting effect for 2025 remains uncertain, potentially leading to
slowed consumption growth that may trigger corporate performance fluctuations. The Company will actively payattention to the progress of the national home appliance consumption stimulus policy, while continuously improvingproduct quality and cost competitiveness, well ensure product planning and market response in advance to gainmore market share.
2. Risk of exchange rate fluctuation
Changes in the international situation may lead to large fluctuations in the exchange rate. The Company willcarefully operate the exchange rate from the perspective of steady operation and risk prevention and control, andwill pay close attention to the exchange rate changes in the future to reduce the adverse effects caused by exchangerate fluctuations.
3. Risk of price fluctuation of bulk materials
The main raw materials of the company's products are steel, copper, aluminum, plastics and chemical materials,etc. If the prices of bulk raw materials fluctuate greatly, the related costs of the company will also changeaccordingly, which will have a certain impact on the company's operating performance. The Company will continueto pay attention to the price fluctuation of bulk materials and take timely measures to deal with risks and reduce theimpact of price fluctuations.
4. Influence of trade friction and geopolitics
The Company will pay close attention to the impact of international trade frictions and geopoliticaluncertainties on its global business, make relevant plans in advance, actively take various risk response measures,and respond quickly to mitigate the impact.
In view of the industry situation in 2024 and the development opportunities in 2025, combined with the currentmarket risks, the Company will lay out its products, technologies and markets in advance around the business policyof "innovation-driven, resource integration, industrial synergy and internal and external integration" in 2025, inorder to promote the Company's high-end and intelligent transformation, enrich its product lines, enhance itsoperating ability and profitability, and strive to build a comprehensive home appliance enterprise to provideconsumers with better products and services and create greater value for shareholders.
XII. In the report period, reception of research, communication and interview
□ Applicable √Not applicable
| Time | Location | Way | Reception object | Type | Main contents of the discussion and the information provided | Basic situation index of investigation |
| January 2,2024 | #2 reference room of the administrative center of the Company | Field research | Institute | Efnd,Zhongtai Securities | Operation condition of the Company | http://www.cninfo.com.cn/new/disclosure/detail?plate=szse&orgId=gssz0000521&stockCode=000521&announcementId=1218790341&announcementTime=2024-01-02%2017:31 |
| January 5,2024 | #3 reference room of the administrative center of the Company | Field research | Individual | Fuguo Fund, Guangfa Fund, GuoshengSecudrities | Operation condition of the Company | http://www.cninfo.com.cn/new/disclosure/detail?plate=szse&orgId=gssz0000521&stockCode=000521&announcementId=1218816536&announcementTime=2024-01-05%2017:21 |
| February 21,2024 | #2 reference room of the administrative center of the Company | Field research | Institute | Guangfa Fund | Operation condition of the Company | http://www.cninfo.com.cn/new/disclosure/detail?plate=szse&orgId=gssz0000521&stockCode=000521&announcementId=1219147646&announcementTime=2024-02-21%2019:55 |
| February 23,2024 | #2 reference room of the administrative center of the Company | Field research | Individual | Huaan Fund, Zhong Ou AMC, Southweast Securities | Operation condition of the Company | http://www.cninfo.com.cn/new/disclosure/detail?plate=szse&orgId=gssz0000521&stockCode=000521&announcementId=1219171786&announcementTime=2024-02-23%2018:03 |
| February 27,2024 | #2 reference room of the administrative center of the Company | Field research | Institute | CUAM, Penghua Fund, Guosheng Securities | Operation condition of the Company | http://www.cninfo.com.cn/new/disclosure/detail?plate=szse&orgId=gssz0000521&stockCode=000521&announcementId=1219198453&announcementTime=2024-02-27%2018:57 |
| April 2,2024 | #3 reference room of the administrative center of the Company | Field research | Individual | Great wall fund, Southern Fund, CGF,GFund Management Co., Ltd.,AXAspdb investment ManaGERS Co., Ltd.,HongdeFund,Xinhua Fund, Huaan Fund, FuguoFund,Guangfa Fund, HuataqiPinebridge Investment, Zhong Ou AM,ABC-CA Fund Management,Caitong Fund, Xinhua Fund, Dacheng Fund, Changxin Fund, PenghuaFund,SouthweastSecurities,Guosheng Securities, Shenwan Securities, China Merchants securities,Northeast Securities, Zhongtai Securities, Changjiang Securities, Industrial Securities | Operation condition of the Company | http://www.cninfo.com.cn/new/disclosure/detail?plate=szse&orgId=gssz0000521&stockCode=000521&announcementId=1219504929&announcementTime=2024-04-02%2018:49 |
| April 8,2024 | #2 reference room of the administrative | Field research | Institute | HuaanFund,CUAM,SouthweastSecurities,Guosheng Securities | Operation condition of the Company | http://www.cninfo.com.cn/new/disclosure/detail?plate=szse&orgId=gssz0000521&stockCode=000521&announcementId=1219536083&announcementTime=2024-04-08%2017:35 |
| center of the Company | ||||||
| April 9,2024 | #2 reference room of the administrative center of the Company | Field research | Individual | Guangfa Fund, FuguoFund,SouthweastSecurities,Guosheng Securities | Operation condition of the Company | http://www.cninfo.com.cn/new/disclosure/detail?plate=szse&orgId=gssz0000521&stockCode=000521&announcementId=1219551684&announcementTime=2024-04-09%2018:09 |
| April 15,2024 | #2 reference room of the administrative center of the Company | Other | Other | Investors who participated in the 2023 annual performance briefing through Panorama.com’s “Investor Relations Interactive Platform” (https://ir.p5w.net) | Holding a presentation on the 2023 annual business results and responding the questions that investors concerned | http://www.cninfo.com.cn/new/disclosure/detail?plate=szse&orgId=gssz0000521&stockCode=000521&announcementId=1219619929&announcementTime=2024-04-15%2018:23 |
| April 23,2024 | #2 reference room of the administrative center of the Company | Field research | Institute | Individual Investor Song Yuhuan,Ruiyang Investment, Huaan Fund, China Futures | Operation condition of the Company | http://www.cninfo.com.cn/new/disclosure/detail?plate=szse&orgId=gssz0000521&stockCode=000521&announcementId=1219766198&announcementTime=2024-04-23%2018:09 |
| April 24,2024 | #1 reference room of the administrative center of the Company | Field research | Individual | Great Wall Fund,Southweast Securities | Operation condition of the Company | http://www.cninfo.com.cn/new/disclosure/detail?plate=szse&orgId=gssz0000521&stockCode=000521&announcementId=1219791260&announcementTime=2024-04-24%2017:55 |
| April 28,2024 | #2 reference room of the administrative center of the Company | Field research | Institute | Jiashi Fund, Gluosheng Securities | Operation condition of the Company | http://www.cninfo.com.cn/new/disclosure/detail?plate=szse&orgId=gssz0000521&stockCode=000521&announcementId=1219893109&announcementTime=2024-04-28%2017:29 |
| April 30,2024 | #2 reference room of the administrative center of the Company | Field research | Individual | Aegon- Industrial Fund, Zhongtai Securities, Tianfeng Securities | Operation condition of the Company | http://www.cninfo.com.cn/new/disclosure/detail?plate=szse&orgId=gssz0000521&stockCode=000521&announcementId=1219956501&announcementTime=2024-04-30%2017:27 |
| May 14,2024 | Meeting room of Mianyang Meiling Company | Field research | Institute | Huaan Fund, Everbright PGIM,abc-ca Fund Management, Huabao Fund, Shenwan Securities | Operation condition of the Company | http://www.cninfo.com.cn/new/disclosure/detail?plate=szse&orgId=gssz0000521&stockCode=000521&announcementId=1220052570&announcementTime=2024-05-14%2018:56 |
| May 22,2024 | #2 reference room of the administrative center of the Company | Field research | Individual | Danyi Investment ,CITIC Securities | Operation condition of the Company | http://www.cninfo.com.cn/new/disclosure/detail?plate=szse&orgId=gssz0000521&stockCode=000521&announcementId=1220133595&announcementTime=2024-05-22%2019:40 |
| May 23,2024 | #2 , #3 reference room of the | Field research | Institute | Boshi Fund, CICC Asset management, CICC Fund, Kaiyuan Securities | Operation condition of the Company | http://www.cninfo.com.cn/new/disclosure/detail?plate=szse&orgId=gssz0000521&stockCode=000521&announcementId=1220144169&announcementTime=2024-05-23%2017:32 |
| administrative center of the Company | ||||||
| May 24,2024 | #2 reference room of the administrative center of the Company | Field research | Individual | CUAM,Fangzheng appliance | Operation condition of the Company | http://www.cninfo.com.cn/new/disclosure/detail?plate=szse&orgId=gssz0000521&stockCode=000521&announcementId=1220159214&announcementTime=2024-05-24%2018:56 |
| May 30,2024 | #3 reference room of the administrative center of the Company | Field research | Institute | Cunhou Fund, Huabao Dund, Dajia Asset, Guotai Junan | Operation condition of the Company | http://www.cninfo.com.cn/new/disclosure/detail?plate=szse&orgId=gssz0000521&stockCode=000521&announcementId=1220212294&announcementTime=2024-05-30%2018:34 |
| June 5,2024 | #2 reference room of the administrative center of the Company, #3 reference room ofZhongshanChanghong | Online platform for online communication,、Field research | Individual | China Merchants Fund, GuoshengSecudrities | Operation condition of the Company | http://www.cninfo.com.cn/new/disclosure/detail?plate=szse&orgId=gssz0000521&stockCode=000521&announcementId=1220272693&announcementTime=2024-06-05%2019:14 |
| July 4,2024 | #2 reference room of | Online platform for online communication | Institute | Huachuang Securities | Operation condition of the Company | http://www.cninfo.com.cn/new/disclosure/detail?plate=szse&orgId=gssz0000521&stockCode=000521&announcementId=1220535014&announcementTime=2024-07-04%2018:28 |
| July 16,2024 | #4 reference room of of the administrative center of the Company, | Online platform for online communication | Individual | Guotai Fund, ChangxinFund,Huatai –PineBridgeInvestment,abrdn(P),UK、PolymerCapitalManagement(P),HK,LMRPartnersLLP(P),UK,StoneyLakeAsset(P),HK,TigerPacificCapital(P),USA,BeijingLongrisingAssetMgmtCoLtd(P),China,SumitomoMitsuiDSAssetManagement(P),Japan,SymmetryInvestmentsHongKongLimited(P),HK,Point72AssetManagementLP(P),United States,SumitomoMitsuiTrustBankLimited(P),JP,PolymerCapitalManagement(P),HK,USB, Zhongtai Securities | Operation condition of the Company | http://www.cninfo.com.cn/new/disclosure/detail?plate=szse&orgId=gssz0000521&stockCode=000521&announcementId=1220653950&announcementTime=2024-07-16%2018:52 |
| July 17,2024 | #2 reference room of the administrative center of the Company | Online platform for online communication | Institute | Efnd, BOCOM Schroders ,Guosheng Securities, Southweast Securities | Operation condition of the Company | http://www.cninfo.com.cn/new/disclosure/detail?plate=szse&orgId=gssz0000521&stockCode=000521&announcementId=1220664189&announcementTime=2024-07-17%2019:22 |
| July 25,2024 | #2 reference room of the | Online platform | Individual | China Merchants Fund, GuoshengSeccurities | Operation condition of the Company | http://www.cninfo.com.cn/new/disclosure/detail?plate=szse&orgId=gssz0000521&stockCode=000521&announcementId=122 |
| administrative center of the Company | for online communication | 0731803&announcementTime=2024-07-25%2019:24 | ||||
| August 21,2024 | #3 reference room of the administrative center of the Company | Online platform for online communication | Institute | BiyunCapital ,Huizheng Investment, Caitong Assets Management,Manulife Fund,, Heyuan Investment, Changsheng Fund, Xunyuan Asset, HuaanHexin,bosc Asset, ,CUAM,BSCOM CAIHAY Asset,Lubomai, Xiangsheng Asset, Dacheng Fund, FangzhengFubang Fund, CITIC Asset Management,Xinda Aoya, Jinying Fund, Huaxia Fund Cunhou Fund, Runhui Investment, Guosheng Securities, SouthweastSecurities,Shenwan Securities, Guotai Securities | Operation condition of the Company | http://www.cninfo.com.cn/new/disclosure/detail?plate=szse&orgId=gssz0000521&stockCode=000521&announcementId=1220938419&announcementTime=2024-08-21%2018:48 |
| August 23,2024 | #2 reference room of the administrative center of the Company | Online platform for online communication | Individual | Fuguo Fund, Wanjia Fund, AnlianFund ,Southweat Appliances, Minsheng Securities | Operation condition of the Company | http://www.cninfo.com.cn/new/disclosure/detail?plate=szse&orgId=gssz0000521&stockCode=000521&announcementId=1220961940&announcementTime=2024-08-23%2017:52 |
| September 5,2024 | #1,#2 reference room of the administrative center of the Company | Online platform for online communication | Institute | Great Wall Fund,SouthweastSecurities,Guangfa Securities | Operation condition of the Company | http://www.cninfo.com.cn/new/disclosure/detail?plate=szse&orgId=gssz0000521&stockCode=000521&announcementId=1221147466&announcementTime=2024-09-05%2018:06 |
| September 6,2024 | #1,#2 reference room of the administrative center of the Company | Online platform for online communication | Individual | Caitong Fund, China Merchants Fund ,CICC Securities, China Merchants securities | Operation condition of the Company | http://www.cninfo.com.cn/new/disclosure/detail?plate=szse&orgId=gssz0000521&stockCode=000521&announcementId=1221160098&announcementTime=2024-09-06%2018:02 |
| September 9,2024 | #2 reference room of the administrative center of the Company | Online platform for online communication | Institute | Boshi Fund, Shenwan Securities | Operation condition of the Company | http://www.cninfo.com.cn/new/disclosure/detail?plate=szse&orgId=gssz0000521&stockCode=000521&announcementId=1221176844&announcementTime=2024-09-09%2018:18 |
| September 19,2024 | #2 reference room of the administrative center of the Company | Online platform for online communication | Individual | HSBC Jinxin, Zhonghang Trust, Cunhe Asset Management ,Anhe Capital ,PICC, Huatai Asset, Kaiyuan Securities, Huafu Securities, CITIC Securities | Operation condition of the Company | http://www.cninfo.com.cn/new/disclosure/detail?plate=szse&orgId=gssz0000521&stockCode=000521&announcementId=1221245006&announcementTime=2024-09-19%2018:02 |
| September 25,2024 | #1 reference room of the administrative center of the Company | Online platform for online communication | Institute | Zhonghan Fund, Dongwu Fund,Minsheng ROYAL Fund,Taiping Life, Hanchuan Investment, Everbright Wealth,CIB Wealth Management, Xingshi Investment, CICC Fund, UBS SDIC, Hangzhou Bank, Fangzheng Securities, CICC | Operation condition of the Company | http://www.cninfo.com.cn/new/disclosure/detail?plate=szse&orgId=gssz0000521&stockCode=000521&announcementId=1221291199&announcementTime=2024-09-25%2018:04 |
| Securities, China Merchants Securities, Tianfeng Securities, Huachuang Securities, CITIC ,China Securities | ||||||
| September 26,2024 | #2 reference room of the administrative center of the Company | Field research | Individual | Penghua Fund, CITIC Prudenial Fund, Dacheng Fund, maxwealth Fund, Changjiang Securities, Shengyu Investment, Hongshang Investment, CITIC Securities | Operation condition of the Company | http://www.cninfo.com.cn/new/disclosure/detail?plate=szse&orgId=gssz0000521&stockCode=000521&announcementId=1221306436&announcementTime=2024-09-26%2018:30 |
| October 23,2024 | #1 reference room of the administrative center of the Company | Online platform for online communication | Institute | Anlian Fund, Huaan Asset, Everbright PGIM ,ABC-CA Fund ,Great wall Fund, Jiashi Fund , Manulife Fund, XiangcaiFunD, PengYANG Fund, Shenwan Fund, CUAM, Changsheng Fund , Minsheng ROYAL Fund,, Changjiang Life, Zheshang Asset Management, PICC Fund, Huaan Fund , BOCOM Schroders , Changxin Fund, Yinhe Fund, Southest Fund, ShenwanSecurieies | Operation condition of the Company | http://www.cninfo.com.cn/new/disclosure/detail?plate=szse&orgId=gssz0000521&stockCode=000521&announcementId=1221490595&announcementTime=2024-10-23%2020:06 |
| November 5,2024 | #2 reference room of the administrative center of the Company | Online platform for online communication | Individual | ICBC Fund, Fuguo Fund, CUAM, Tianhong Fund, Ping An Fund, Huabao Fund GuangfaFund,China Fund, CICC Fund , Tianchong Assets, Guolianan Fund, Huamei International Investment Group,BOSC Asset, Taikang Asset, Westard Lide Fund, Everbright PGIM, Zheshang Asset Management, ABC-CA Fund, Guangzhou Bank ,China Merchants Asset Management, Donghai Self support, Huatai –PineBridge Investment, Suxin Fund, Ping An Life, Xinyuan Fund, Tuling Asset, Yixing Investment, Huaan Securities | Operation condition of the Company | http://www.cninfo.com.cn/new/disclosure/detail?plate=szse&orgId=gssz0000521&stockCode=000521&announcementId=1221637937&announcementTime=2024-11-05%2019:38 |
| November 6,2024 | #2 reference room of the administrative center of the Company | Online platform for online communication | Institute | Changxin Fund, Guotai Junan | Operation condition of the Company | http://www.cninfo.com.cn/new/disclosure/detail?plate=szse&orgId=gssz0000521&stockCode=000521&announcementId=1221639903&announcementTime=2024-11-06%2018:20 |
| November 15,2024 | #2 reference room of the administrative center of the Company | Online platform for online communication | Individual | BOC Investment Management ,OrientAsset,Minsheng Securities | Operation condition of the Company | http://www.cninfo.com.cn/new/disclosure/detail?plate=szse&orgId=gssz0000521&stockCode=000521&announcementId=1221742046&announcementTime=2024-11-15%2018:20 |
| November 18,2024 | #2 reference room of the administrative center of the Company | Online platform for online communication | Institute | Guotai Fund, Xingzheng Securities | Operation condition of the Company | http://www.cninfo.com.cn/new/disclosure/detail?plate=szse&orgId=gssz0000521&stockCode=000521&announcementId=1221766756&announcementTime=2024-11-18%2017:32 |
| November 20,2024 | #2 reference | Field | Individu | Guangfa Fund, | Operation condition of the | http://www.cninfo.com.cn/new/disclosure/detail?plate=szse&or |
| room of the administrative center of the Company | research | al | HuaanFund,SouthweastSecurities,Zhongtai Securities | Company | gId=gssz0000521&stockCode=000521&announcementId=1221789797&announcementTime=2024-11-20%2017:28 | |
| December 17,2024 | #1 reference room of the administrative center of the Company | Field research | Institute | Boshi Fund, Guotai Junan | Operation condition of the Company | http://www.cninfo.com.cn/new/disclosure/detail?plate=szse&orgId=gssz0000521&stockCode=000521&announcementId=1222048467&announcementTime=2024-12-17%2018:32 |
| December 26,2024 | #2 reference room of the administrative center of the Company | Online platform for online communication | Institute | BOCOM Schroders, Southwest Securaites | Operation condition of the Company | http://www.cninfo.com.cn/new/disclosure/detail?plate=szse&orgId=gssz0000521&stockCode=000521&announcementId=1222155902&announcementTime=2024-12-26%2019:20 |
| December 27,2024 | #2 reference room of the administrative center of the Company | Online platform for online communication | Individual | CoreView capital , China Securities | Operation condition of the Company | http://www.cninfo.com.cn/new/disclosure/detail?plate=szse&orgId=gssz0000521&stockCode=000521&announcementId=1222167098&announcementTime=2024-12-27%2019:08 |
XIII. Formulation and implementation of market value management system and valuation boost planWhether the Company has established a market value management system
□Yes?No
Whether the Company has disclosed plans for valuation boost.
□Yes?No
XIV. The implementation of the action plan of "Double improvement of quality and return".Whether the Company has disclosed the action plan of "Double improvement of quality and return".
□ Yes √No
IV. Corporate Governance
I. Corporate governance of the Company(i) Overview of the corporate governanceIn strict compliance with the Company Law, Securities Law, Governance Principles of Listed Company issuedby the CSRC, the Rules Governing the Listing of Stocks on Shenzhen Stock Exchange and Shenzhen StockExchange Self-Regulatory Guidelines No.1- Standardized Operation of the Listed Companies on main Board ofSSE, the Company continued to construct and perfect its governance structure, thereby forming itsdecision-making, supervision and operation management organization with general meeting, the board ofdirectors, the board of supervisors and operation management as the major structure. The general meeting,board of directors, board of supervisors and operation management of the Company has definite terms ofreference, which can ensure an effective balance, scientific decision-making process and coordinative operation,laying firm foundation for making decisions relating to the Company’s continuous, steady and healthydevelopment.During the reporting period, the actual situation of corporate governance has been in line with the requirementsof relevant state laws and regulations, and regulatory documents relevant to governance of listed companiesissued by China Securities Regulatory Commission and Shenzhen Stock Exchange.During the reporting period, The Company revised and issued the Articles of Association, The AuthorizedManagement System, the Rules of Procedure of the Board of Supervisors and other systems, and formulated theImplementation Rules of the ESG Management Committee, which further improved the standard operation andgovernance level of the Company. The overall situation of corporate governance meets the requirements ofrelevant national laws and regulations, and regulatory documents on corporate governance of listed companiesissued by China Securities Regulatory Commission and Shenzhen Stock Exchange.
1. Shareholders and general meeting
The Company standardized the procedures concerning convening, holding and voting of general meeting instrict compliance with the Articles of Association and Rules of Procedure of General Meeting. All shareholders,especially the minority shareholders, were equally treated to ensure all shareholders shall rank equal status andcan fully exercise their right. During the reporting period, the Company convened 4 shareholders generalmeetings. In addition to convening general meeting in forms of site conference, the Company offeredconvenience for shareholders to present general meeting via network voting which was safe, economic andconvenient. At the same time, all the matters submitted to the Company’s general meeting of shareholdersshould count the votes of the small and medium investors separately, and the results of the vote count should bedisclosed timely so as to effectively protect the rights and interests of small and medium investors and ensurethat all shareholders, especially the small and medium shareholders, fully exercise their rights.
2. The Company and controlling shareholders
The Company has independent business and independent management capability. The Company and itscontrolling shareholders owe independent business, personnel, assets, organs and finance. During the period,controlling shareholder abide by requirement of Article of Association and Management System of RelatedTransactions, strictly regulate their behaviors, and no controlling shareholder has directly or indirectlyintervened in the Company’s policy-making and business activities beyond the general meeting of stockholders,no capital or assets of the Company occupied by controlling shareholder and its affiliates either.
3. The directors and board of directors
Board Meeting are revoke and open in line with the regulation of Company Law and Article of Associationstrictly, voting and information disclosure procedures appliance with relevant rules. All directors of the
company have carried out the work in accordance with the Rules of Procedure for the Board of Directors andthe Independent Director System, conscientiously attended the board meetings and the shareholders' meetings,exercised their powers in accordance with the law, performed their duties diligently, and actively participated inrelevant training organized by the Shenzhen Stock Exchange and Anhui Securities Regulatory Bureau, theListed Companies Association of Anhui, and have been familiar with relevant laws and regulations. Independentdirectors strictly abide by the Guiding Opinions on Establishing an Independent Director System in ListedCompanies, the Independent Director System and other regulations, in line with a serious, diligent and loyalworking attitude, based on an independent and prudent stand, actively participated in the company'sdecision-making, carefully considered various proposals, issued prior approval and independent opinions onrelated transactions and major issues, fully exerted the supervision and check and balance role of independentdirectors, and effectively safeguarded the interests of the company and all shareholders, especially the small andmedium shareholders. The four special committees of strategy, remuneration and assessment, audit andnomination under the board of directors of the company have been responsible for the discussion,decision-making, supervision and evaluation of major work issues of the company according to thecorresponding working rules of each departmental committee, and quality played an important role in thescientific decision-making and the improvement of decision-making efficiency and quality.
4. Supervisors and board of supervisors
The Company convened and held meeting of supervisors in strict compliance with the Company Law andArticles of Association, and the voting and information disclosure procedures of supervisors’ meeting compliedwith relevant requirements. The tenth board of supervisors of the company has five supervisors, including twoemployee supervisors, the number and constitution of the board of supervisors meet the requirements of lawsand regulations. All supervisors of the company can earnestly perform their duties in accordance with therequirements of the Rules of Procedure for the Board of Supervisors, supervise the decision-making proceduresand resolutions of the board of directors and the legal operation of the company, review the regular reportsprepared by the board of directors and put forward written review opinions, and effectively supervise andexpress independent opinions on the company's major events, related transactions, financial status, the legalityand compliance of directors and senior executives’ performance of duties by attending the general meeting ofshareholders and the meeting of the board of directors from the perspective of safeguarding the legitimate rightsand interests of the company and shareholders.
5. The performance appraisal and incentive and constraint mechanism
According to the Articles of Association, the Board of Directors of the company will decide to appoint ordismiss the president, secretary of the Board of Directors and other senior management personnel of thecompany, and decide on their remuneration, rewards and punishments; According to the nomination of thepresident, decide to appoint or dismiss senior management personnel such as the company's vice president andfinancial officer, and decide on their remuneration, rewards and punishments. The performance evaluation ofdirectors, supervisors, presidents and other senior management personnel shall be conducted by the HumanResources Department of the company on a daily basis, and by the Remuneration and Appraisal Committee ofthe company at the end of the year. The company has established and continuously improved fair andtransparent performance evaluation standards and incentive and restraint mechanisms for directors, supervisorsand senior management personnel. The appointment of company managers is open and transparent, in line withthe relevant provisions of laws and regulations.
6. The stakeholders
The Company fully respects and maintains the legitimate rights and interests of stakeholders; strengthencommunication and negotiation with each other, realizes the coordination and balance of interests for all parties
including society, shareholders, company and staff, pushes forward the sustainable, steady and harmoniousdevelopment of the Company together. In terms of safeguarding the interests of shareholders, the companytreats all shareholders, especially the small and medium-sized shareholders equally, in strict accordance withrelevant regulations, and ensures that all shareholders enjoy equal status and fully exercise their rights byregulating the convening, holding and voting procedures of the general meeting of shareholders.In terms ofmaintaining employees' rights and interests, starting from the company's strategy and business development, ithas continuously promoted and improved talent mechanisms such as talent reserve, learning and development,career planning and guidance, whole-process performance management, and salary incentive system, regularlyevaluated and continuously monitored employees' engagement, satisfaction level and corporate cultureevaluation index, continuously improved employees' concerns, and realized employees' personal developmentgoals while achieving organizational goals; In terms of protecting consumer rights, we will improve thefunction construction of official channel service platforms such as the 4008 service hotline, brand officialwebsite, WeChat public account, and Zhihuijia APP, and handle user needs and problems in a timely manner.We will launch services such as the 180-day freshness preservation of Meiling M fresh refrigerators andunconditional returns if you are not satisfied, to improve consumer satisfaction. In terms of protecting supplierrights, we will establish a complete procurement management system, timely optimize and revise systemdocuments, unify information system tools, strictly control every link of procurement business, cultivate coreand strategic suppliers, establish a high-end supply chain cultivation plan, and form a collaborative, cooperativeand win-win situation with suppliers. In terms of protecting the interests of stakeholders, we will promote andfacilitate two-way communication and information sharing based on the principle of equality and mutual benefit,and strive to establish a win-win cooperation model of common development and growth with stakeholders
7. About information disclosure and transparency
During the reporting period, the company strictly complied with relevant provisions of the Listing Rules ofShenzhen Stock Exchange and the company's Information Disclosure Management System, strengthened themanagement of information disclosure affairs, actively fulfilled its information disclosure obligations, anddesignated Securities Times, China Securities Journal, Hong Kong Commercial Daily and Juchao InformationWebsite（Juchao Website (www.cninfo.com.cn)）as the designated media for the company's informationdisclosure, implemented strict confidential procedures for material undisclosed inside information, andcontrolled the scope of informed personnel. The company earnestly fulfilled its obligations to disclose relevantinformation in a true, accurate, timely and complete manner, and ensured that all investors equally enjoy theright to know and other legitimate rights and interests.
8. Investor relations management
The Company continued to well ensure investor relations management, deepen communication and exchangeswith investors, enhance investors' understanding and recognition of the company, and safeguard investors'legitimate rights and interests in accordance with the requirements of the Guidelines on Investor RelationsManagement of Listed Companies, Investor Relations Management System and Reception and Promotion WorkSystem. During the reporting period, the Company adopted various forms of communication to strengthencommunication with investors and convey the progress of various businesses of the Company. By strengthening theconstruction of the Company's website, investors can know the Company's operation in a timely, true andcomprehensive manner. The Company communicated with investors through the platform of investor relations inShenzhen Stock Exchange (https://irm.cninfo.com.cn/), fully listened to investors' opinions and suggestions, andearnestly safeguarded the interests of small and medium-sized investors; The Company earnestly answered and
replied to investors' visits and calls, and received and replied to faxes and e-mails, and treated media reportscautiously; The Company seriously received the visits and consultations of investors and research institutions,upheld the principle of fairness, impartiality and openness in the reception, promptly disclosed the communicationcontents with investors' research, and ensured that all investors were entitled to the right to be informed and otherlegitimate rights and interests equally. At the same time, the Company also maintained smooth communication withinvestors through multiple channels, modes and platforms such as conference calls and investment strategymeetings, so as to enhance investors' understanding of the Company and improve the transparency of the Company'soperation.In order to help investors further understand the Company's operating performance and financial situation,the Company organized the 2023 online performance briefing meeting and achieved good results, which helpedinvestors to understand the listed companies more comprehensively, enhanced the transparency of the Company,earnestly safeguarded the legitimate rights and interests of investors, and continuously promoted and improved themanagement level of investor relations in the Company. The Company insisted on safeguarding equity interests andthe principle of rewarding shareholders, aiming at providing investors with long-term, steady and rising dividendreturns. During the reporting period, the Company formulated the Shareholders' Return Plan for the Next ThreeYears (2024 -2026) to share the development achievements with its shareholders.(ii)Whether there are significant differences between the actual state of corporate governance and laws,administrative regulations and the provision with governance concerned for listed companies issued by CSRC
□Yes √ No
There are no significant differences between the actual state of corporate governance and laws, administrativeregulations and the provision with governance concerned for listed companies issued by CSRCII. Independence of the Company relative to controlling shareholder and the actual controller in ensuring theCompany’s assets, personnel, finance, organization and businessesThe Company totally separated in business, personnel, assets, institutions and financial aspects from SichuanChanghong (controlling shareholder) and actual controller State-owned Assets Supervision & AdministrationCommission of Mianyang Municipality, with independent business accounting, responsibility and risk andindependent business operation capability.
1. The business: the Company has an independent and complete business as well as operation ability, withspecialized procurement, production, technology, marketing, management, human resources and otherdepartments. We autonomously manage and operate business on our own. While the management staff areindependent from controlling shareholders and their subordinate enterprises. The Company is free frominterference by controlling shareholders and other affiliates, and there is no dependence on controllingshareholders and other affiliates.
2. The personnel: personnel, labor, personnel and salary of the Company are completely independent. President,vice president, person in charge of finance, Secretary of the board of directors and other senior managementpersonnel are working in the Company and receive salary, not receiving any remuneration and holding positionof any except directors, supervisors in the controlling shareholder and its subordinate enterprises.
3. Assets: the Company owns places of production and management independent from its controllingshareholder, owns complete assets structure, independent production system, auxiliary production systems andsupporting facilities, land use rights, ownership of houses and other assets, and independent purchase and sales
system. No assets occupied by controlling shareholders and other affiliates.
4. Institutions: the Company established organization completely independent from controlling shareholders;the general meeting, board of directors, board of supervisors and the internal organization are capable of takingindependent action, with no controlling shareholder intervention of corporation's decision-making behavior. TheCompany strengthen the power restriction system via general meeting, the Board, supervisory committee,independent directors and vary committees, formulated an effective structure for corporate governance.
5. Financial aspects: the Company set up independent financial management, and independent accountingsystem and financial management system, independently setting up banking account and tax declaration.III. Horizontal competition
□ Applicable √ Not applicable
IV. In the report period, the Company held annual shareholders’ general meeting and extraordinaryshareholders’ general meeting(i) Annual Shareholders’ General Meeting in the report period
| Session of meeting | Type | Ratio of investor participation | Date | Date of disclosure | Index of disclosure |
| AGM of 2023 | AGM | 44.8860% | April 25,2024 | April 26,2024 | Juchao Website www.cninfo.com.cn( Announcement No.:2024-024） |
| First Extraordinary General Meeting of 2024 | Extraordinary General Meeting | 42.7763% | June 18,2024 | June 19,2024 | Juchao Website www.cninfo.com.cn( Announcement No.:2024-036） |
| Second Extraordinary General Meeting of 2024 | Extraordinary General Meeting | 46.8113% | October 29,2024 | October 30,2024 | Juchao Website www.cninfo.com.cn( Announcement No.:2024-060） |
| Third Extraordinary General Meeting of 2024 | Extraordinary General Meeting | 38.2484% | December 27,2024 | December 28,2024 | Juchao Website www.cninfo.com.cn( Announcement No.:2024-076） |
(ii) Request for extraordinary general meeting by preferred stockholders whose voting rights restore
□ Applicable √ Not applicable
长虹美菱股份有限公司2024年年度报告全文
V. Directors, supervisors and senior officers(i) Basic information
| Name | Title | Working status | Sex | Age | Start dated of office term | End date of office term | Shares held at period-begin (share) | Number of shares increased in this period (share) | Number of shares decreased in this period (share) | Other changes (share) | Shares held at period-end (share) | Reasons for increase or decrease of shares |
| Wu Dinggang | Chairman | In office | Male | 52 | April 28,2019 | June 18,2027 | 570,500 | 0 | 0 | 0 | 570,500 | Not applicable |
| Zhao Qilin | Director | In office | Male | 49 | December 23,2021 | June 18,2027 | 0 | 0 | 0 | 0 | 0 | Not applicable |
| Yi Suqin | Director | In office | Female | 46 | June 18,2024 | June 18,2027 | 0 | 0 | 0 | 0 | 0 | Not applicable |
| Cheng Ping | Director | In office | Male | 55 | June 18,2024 | June 18,2027 | 0 | 0 | 0 | 0 | 0 | Not applicable |
| Zhong Ming | Director | In office | Male | 52 | May 21,2019 | June 18,2027 | 236,175 | 0 | 0 | 0 | 236,175 | Not applicable Not applicable |
| President | Office leaving注 | December 11,2020 | November 22,2024 | |||||||||
| Fang Wei | Director | In office | Male | 55 | June 18,2024 | June 18,2027 | 0 | 0 | 0 | 0 | 0 | Not applicable |
| Mou Wen | Independent director | In office | Female | 58 | October 12,2020 | October 12,2026 | 0 | 0 | 0 | 0 | 0 | Not applicable |
| Hong yuanjia | Independent director | In office | Male | 49 | October 12,2020 | October 12,2026 | 0 | 0 | 0 | 0 | 0 | Not applicable |
| Cheng Wenlong | Independent director | In office | Male | 55 | June 18,2024 | June 18,2027 | 0 | 0 | 0 | 0 | 0 | Not applicable |
| Qiu Jin | Chairman of Supervisory | In office | Male | 50 | June 18,2024 | June 18,2027 | 0 | 0 | 0 | 0 | 0 | Not applicable |
| Ma Yu | Supervisor | In office | Male | 42 | June 18,2024 | June 18,2027 | 0 | 0 | 0 | 0 | 0 | Not applicable |
| Ji Ge | Staff supervisor | In office | Female | 43 | December 25,2017 | June 28,2027 | 0 | 0 | 0 | 0 | 0 | Not applicable |
| Tang Youdao | Deputy president | In office | Male | 54 | March 29,2021 | June 18,2027 | 800,000 | 0 | 0 | 0 | 800,000 | Not applicable |
| Kou Huameng | Director | Office leaving注2 | Male | 55 | July 3,2014 | June 18,2024 | 0 | 0 | 0 | 0 | 0 | Not applicable Not applicable |
| Vice president | In office | November 22,2017 | June 18,2027 |
长虹美菱股份有限公司2024年年度报告全文
| Hu Zhaogui | Director | Office leaving注2 | Male | 50 | June 21,2018 | June 18,2024 | 178,050 | 0 | 0 | 0 | 178,050 | Not applicable Not applicable |
| Vice president | In office | June 21,2018 | June 18,2027 | |||||||||
| Li Xia | Vice president | In office | Female | 44 | June 18,2024 | June 18,2027 | 414,600 | 0 | 0 | 0 | 414,600 | Not applicable Not applicable |
| Secretary of the Board | May 22,2009 | June 18,2027 | ||||||||||
| Pang Haitao | CFO | In office | Male | 49 | October 25,2017 | June 18,2027 | 0 | 0 | 0 | 0 | 0 | Not applicable |
| Yong Fengshan | Director | Office leaving注2 | Male | 56 | September 12,2017 | June 18,2024 | 0 | 0 | 0 | 0 | 0 | Not applicable |
| Zhao Gang | Independent director | Office leaving注2 | Male | 46 | October 12,2020 | June 18,2024 | 0 | 0 | 0 | 0 | 0 | Not applicable |
| Shao Min | Chairman of Supervisory | Office leaving注2 | Male | 42 | September 12,2017 | June 18,2024 | 0 | 0 | 0 | 0 | 0 | Not applicable |
| He Xintan | Supervisor | Office leaving注2 | Male | 44 | September 12,2017 | June 18,2024 | 0 | 0 | 0 | 0 | 0 | Not applicable |
| Huang Hong | Supervisor | Office leaving注2 | Female | 54 | September 12,2017 | June 18,2024 | 0 | 0 | 0 | 0 | 0 | Not applicable |
| Sun Hongying | Staff supervisor | Office leaving注2 | Female | 53 | March 30,2021 | June 18,2024 | 0 | 0 | 0 | 0 | 0 | Not applicable |
| Huang Danian | Vice president | Office leaving注2 | Male | 55 | September 12,2017 | June 18,2024 | 356,450 | 0 | 0 | 0 | 356,450 | Not applicable |
| Total | -- | -- | -- | -- | -- | -- | 2,555,775 | 0 | 0 | 0 | 2,555,775 | -- |
Note 1: On June 18, 2024, the 10th Board of Directors and the Board of Supervisors of the Company were re-elected. After review and approval at the FirstExtraordinary General Meeting of Shareholders in 2024, it was agreed to elect Mr. Wu Dinggang, Mr. Zhao Qilin, Ms. Yi Suqin, Mr. Cheng Ping, Mr. Zhong Ming andMr. Fang Wei as non-independent directors of the 11th Board of Directors of the Company; elect Ms. Mu Wen, Mr. Hong Yuanjia and Mr. Cheng Wenlong asindependent directors of the 11th Board of Directors of the Company; and elect Mr. Qiu Jin and Mr. Ma Yu as supervisors of the 11th Board of Supervisors of theCompany.On June 17, 2024, on the second meeting of the 9th Employee Congress of the Company, it is agreed to democratically elect Ms. Ji Ge as the employee supervisor of the11th Board of Supervisors of the Company.
长虹美菱股份有限公司2024年年度报告全文
On June 18, 2024, the Company held the first meeting of the 11th Board of Directors to hold a general election for senior management, and agreed to appoint Mr. ZhongMing as the president of the Company, Mr. Tang Youdao, Mr. Kou Huameng and Mr. Hu Zhaogui as vice presidents of the Company, Ms. Li Xia as the vice presidentand secretary of the Board of Directors of the Company, and Mr. Pang Haitao as the financial controller of the Company.Note 2: On November 22, 2024, Mr. Zhong Ming, the former president of the Company, resigned as the president of the Company due to personal work changes. On thesame day, the Company held the sixth meeting of the 11th Board of Directors, and authorized Mr. Tang Youdao, the vice president of the Company, to act as thepresident of the Company from the date of review and approval by the Board of Directors to the date of appointment of a new president by the Board of Directors.
1. During the reporting period, whether there was any departure of directors and supervisors and dismissalof Senior Officers
√Yes □No
(1)On June 18, 2024, the 10th Board of Directors of the Company was re-elected, and Mr.YongFengshan,
the director, left after his term expired.
(2)On June 18, 2024, the 10th Board of Directors of the Company was re-elected, and Mr. Kou Huameng, thedirector, left after his term expired, however he was appointed as the vice president by the 11th Board of Directors.
（3）On June 18, 2024, the 10th Board of Directors of the Company was re-elected, and Mr. Hu Zhaogui, thedirector, left after his term expired, however he was appointed as the vice president by the 11th Board of Directors.
（4）On June 18, 2024, the 10th Board of Directors of the Company was re-elected, and Mr. Zhao Gang, theincdependent director, left after his term expired.
（5）On June 18, 2024, the 10th Board of supervisors of the Company was re-elected,and Mr. Shao Min,Chairman of the Board of Supervisors , left after his term expired.
（6）On June 18, 2024, the 10th Board of supervisors of the Company was re-elected,and Mr. He Xintan, thesupervisor of the Board of Supervisors , left after his term expired.
（7）On June 18, 2024, the 10th Board of supervisors of the Company was re-elected,and Ms. Huang Hong,the supervisor of the Board of Supervisors , left after his term expired.
（8）On June 18, 2024, the 10th Board of supervisors of the Company was re-elected,and Ms. Sun Hongying,the supervisor of the Board of Supervisors , left after his term expired.
（9）On June 18, 2024,The Company held the first meeting of the 11th Board of Directors to change thesenior management. Mr. Huang Danian no longer served as the vice president.
（10）On November 22,2024，Mr. Zhong Ming, the former president of the Company, resigned due topersonal work changes. After his resignation, he would continue to serve in the Company as a director, a member ofthe Strategy Committee under the Board of Directors, a member of the Nomination Committee and a member of theESG Management Committee.
2. Changes of directors, supervisors and senior executives
√Applicable □Not applicable
| Name | Title | Types | Date | Reason |
| Wu Dinggang | Director | Elected | June 18,2024 | After review and approval at the First Extraordinary General Meeting of Shareholders in 2024, it was agreed to elect Mr. Wu Dinggang as a non-independent director of the 11th Board of Directors of the Company, with a term of office of three years, which will take effect from the date of review and approval at the General Meeting of Shareholders |
| Chairman | Elected | June 18,2024 | According to the resolution of the first meeting of the 11th Board of Directors of the Company, it was agreed to elect Mr. Wu Dinggang as the chairman |
| of the 11th Board of Directors of the Company, with a term of office from the date of review and approval by the Board of Directors of the Company to the date of expiration of his term of office in the current Board of Directors. | ||||
| Zhao Qilin | Director | Elected | June 18,2024 | After review and approval at the First Extraordinary General Meeting of Shareholders in 2024, it was agreed to elect Mr. Zhao Qilin as a non-independent director of the 11th Board of Directors of the Company, with a term of office of three years, which will take effect from the date of review and approval at the General Meeting of Shareholders |
| Ye Suqin | Director | Elected | June 18,2024 | After review and approval at the First Extraordinary General Meeting of Shareholders in 2024, it was agreed to elect Ms. Yi Suqin as a non-independent director of the 11th Board of Directors of the Company, with a term of office of three years, which will take effect from the date of review and approval at the General Meeting of Shareholders |
| Cheng Ping | Director | Elected | June 18,2024 | After review and approval at the First Extraordinary General Meeting of Shareholders in 2024, it was agreed to elect Mr. Cheng Ping as a non-independent director of the 11th Board of Directors of the Company, with a term of office of three years, which will take effect from the date of review and approval at the General Meeting of Shareholders |
| Zhong Ming | Director | Elected | June 18,2024 | After review and approval at the First Extraordinary General Meeting of Shareholders in 2024, it was agreed to elect Mr. Zhong Ming as a non-independent director of the 11th Board of Directors of the Company, with a term of office of three years, which will take effect from the date of review and approval at the General Meeting of Shareholders |
| President | Appoint | June 18,2024 | According to the resolution of the first meeting of the 11th Board of Directors of the Company, it was agreed to elect Mr. Zhong Ming as the Vice chairman of the 11th Board of Directors of the Company, with a term of office from the date of review and approval by the Board of Directors of the Company to the date of expiration of his term of office in the current Board of Directors. | |
| President | Dimission | November 22,2024 | Due to personal reasons, he appoint to resign from his position as executive vice president of the company | |
| Fang Wei | Director | Elected | June 18,2024 | After review and approval at the First Extraordinary General Meeting of Shareholders in 2024, it was agreed to elect Mr. Fang Wei as a non-independent director of the 11th Board of Directors of the Company, with a term of office of three years, which will take effect from the date of |
| review and approval at the General Meeting of Shareholders | ||||
| Mou Wen | Independent director | Elected | June 18,2024 | After review and approval at the First Extraordinary General Meeting of Shareholders in 2024, it was agreed to elect Ms. Mou Wen asanindependent director of the 11th Board of Directors of the Company, with a term of office of three years, which will take effect from the date of review and approval at the General Meeting of Shareholders |
| Hong Yuanjia | Independent director | Elected | June 18,2024 | After review and approval at the First Extraordinary General Meeting of Shareholders in 2024, it was agreed to elect Mr. Hong Yuanjiaasanindependent director of the 11th Board of Directors of the Company, with a term of office of three years, which will take effect from the date of review and approval at the General Meeting of Shareholders |
| Cheng Wenlong | Independent director | Elected | June 18,2024 | After review and approval at the First Extraordinary General Meeting of Shareholders in 2024, it was agreed to elect Mr. Cheng Wenlongasanindependent director of the 11th Board of Directors of the Company, with a term of office of three years, which will take effect from the date of review and approval at the General Meeting of Shareholders |
| Qiu Jin | Supervisor | Elected | June 18,2024 | After review and approval at the First Extraordinary General Meeting of Shareholders in 2024, it was agreed to elect Mr.Qiu Jian as the shareholder representative supervisor of the 11th Board of supervisors of the Company, with a term of office of three years, which will take effect from the date of review and approval at the General Meeting of Shareholders. |
| Chairman of Supervisory | Elected | June 18,2024 | According to the resolution of the first meeting of the 11th Board of Supervisors of the Company, it was agreed to elect Mr. Qiu Jin as the chairman of the 11th Board of supervisors of the Company, with a term of office of three years,The term of office is consistent with the term of office of the current Board of Supervisors. | |
| Ma Yu | Supervisor | Elected | June 18,2024 | After review and approval at the First Extraordinary General Meeting of Shareholders in 2024, it was agreed to elect Mr. Ma Yu as the shareholder representative supervisor of the 11th Board of supervisors of the Company, with a term of office of three years, which will take effect from the date of review and approval at the General Meeting of Shareholders. |
| Ji Ge | Staff supervisor | Elected | June 17,2024 | After democratic election by 2nd session of the 9th employee representative meeting, Ms.Ji Ge was elected as the employee supervisor of the 11th board of supervisors, with a term of office of three years,The term of office is consistent with |
| the term of office of the current Board of Supervisors. | ||||
| Tang Youdao | Vice president | Appoint | June 18,2024, November 22, 2024 | According to the resolution of the first meeting of the 11th Board of Directors, it was agreed to appoint Mr. Tang Youdao as the Company's vice president. with a term of office from the date of review and approval by the Board of Directors of the Company to the date of expiration of his term of office in the current Board of Directors. According to the resolution of the Sixth meeting of the 11th Board of Directors, it was agreed to appoint Mr. Tang Youdao as the Company's vice president. with a term of office from the date of review and approval by the Board of Directors of the Company to the date of expiration of his term of office in the current Board of Directors. |
| Kou Huameng | Director | Dimission | June 18,2024 | When the Board of Directors changes, he will resign at the expiration of his term of office. |
| Vice president | Appoint | June 18,2024 | According to the resolution of the first meeting of the 11th Board of Directors, it was agreed to appoint Mr. Kou Huameng as the Company's vice president. with a term of office from the date of review and approval by the Board of Directors of the Company to the date of expiration of his term of office in the current Board of Directors. | |
| Hu Zhaogei | Director | Dimission | June 18,2024 | When the Board of Directors changes, he will resign at the expiration of his term of office. |
| Vice president | Appoint | June 18,2024 | According to the resolution of the first meeting of the 11th Board of Directors, it was agreed to appoint Mr. Huu Zhaogui as the Company's vice president. with a term of office from the date of review and approval by the Board of Directors of the Company to the date of expiration of his term of office in the current Board of Directors. | |
| Li Xia | Vice president | Appoint | June 18,2024 | According to the resolution of the first meeting of the 11th Board of Directors, it was agreed to appoint Ms. Li Xia as the Company's vice president. with a term of office from the date of review and approval by the Board of Directors of the Company to the date of expiration of his term of office in the current Board of Directors. |
| Secretary of the Board | Appoint | June 18,2024 | According to the resolution of the first meeting of the 11th Board of Directors, it was agreed to appoint Ms. Li Xia as the Company's secretary of the board. with a term of office from the date of review and approval by the Board of Directors of the Company to the date of expiration of his term of office in the current Board of Directors. | |
| Pang Haitao | CFO | Appoint | June 18,2024 | According to the resolution of the first meeting of the 11th Board of Directors, it was agreed to |
| appoint Mr.Pang Haitao as the Company's CFO. with a term of office from the date of review and approval by the Board of Directors of the Company to the date of expiration of his term of office in the current Board of Directors. | ||||
| Yong Fengshan | Director | Dimission | June 18,2024 | When the Board of Directors changes, he will resign at the expiration of his term of office. |
| Zhao Gang | Independent director | Dimission | June 18,2024 | When the Board of Directors changes, he will resign at the expiration of his term of office. |
| Shao Min | Chairman of Supervisory | Dimission | June 18,2024 | When the Board of Supervisors changes, he will resign at the expiration of his term of office. |
| He Xintan | Supervisor | Dimission | June 18,2024 | When the Board of Directors changes, he will resign at the expiration of his term of office. |
| Hong Hong | Supervisor | Dimission | June 18,2024 | When the Board of Directors changes, he will resign at the expiration of his term of office. |
| Sun Hongying | Staff supervisor | Dimission | June 18,2024 | When the Board of Supervisors changes, he will resign at the expiration of his term of office. |
| Huang Danian | Vice president | Dimission | June 18,2024 | He will resign at the expiration of his term of office. |
(ii) Post-holding
1. Professional background, major working experience and present main responsibilities in Company ofdirectors, supervisors and senior executive at the present
(1) Wu Dinggang, male, the Han nationality from Suining, Sichuan Province, was born in March 1973, Memberof CPC, owns bachelor degree, graduate from Tianjin University of Commerce China (Tianjin University ofCommerce now), major in refrigeration equipment and cryogenic technique. He served successively as GM ofSuining Sale Branch and Chengdu Sales Branch of Sichuan Changhong Electric Co., LTD, director of Sichuanand Chongqing Marketing Management Department of Sichuan Changhong Electric Co., LTD, deputy GM ofChanghong Electronics (China) Marketing Co., GM of market planning center of Changhong Multimedia Industry,director and GM of Le-Jia-Yi Chain Management Co., Ltd., ZhongkeMeiling Cryogenic Technology Co., Ltd.director and GM of Sichuan Changong Air Conditioner Co., Ltd and deputy president, president, deputy chairmanand Party Secretary of the Company. Currently he serves as director, vice GM of Sichuan Changhong Electric Co.,Ltd., chairman of the Company; Chairman of Zhongshan Changhong Electric Co., LTD; Chairman of SichuanChanghong Air-conditioner Co., Ltd. and Chairman of ZhongkeMeiling Cryogenic Technology Co., Ltd.
(2)Zhao Qilin, male, Han nationality, born in September 1975, graduated from Southwestern University ofFinance and Economics with a bachelor's degree in rural finance, and served as accountant of the financialdepartment, investment project manager, asset management manager of asset management department, managerof investment management department, and securities affairs representative of Sichuan Changhong Electric Co.,Ltd.; financial manager of Sichuan Changhong Innovation Investment Co., Ltd.; chief financial officer and andjoint company secretary of Changhong Jiahua Holdings Co., Ltd.. He currently serves as secretary of the board,general counsel, office director of the board of directors, and director of the asset management department ofSichuan Changhong Electric Co., Ltd., director of Anjian Holdings Co., Ltd.,director of Sichuan ChanghongInnovation Investment Co., Ltd.. and the director of the Company.
(3)YiSuqin, female, Han, born in August 1978 in Xiantao, Hubei Province, member of the Communist Party ofChina, master's degree in Business Administration from University of Electronic Science and Technology of China,
bachelor's degree in International Accounting from Zhongnan University of Economics and Law, SeniorAccountant. She has served as the Leading Accountant of Jining Sales Branch and Shijiazhuang Sales Branch ofSichuan Changhong Electric Co.,Ltd., the Marketing Finance Director and Cost Director of Multimedia Companyof Sichuan Changhong Electric Co.,Ltd., the Manager of Tax Section of Finance Department, the Director of TaxSection, and the Senior Manager of Taxation and Integration of Sichuan Changhong Electric Co.,Ltd., and theDeputy Head of Financial Management Department of Sichuan Changhong Electric Co.,Ltd.She is currently theHead of the Finance Department of Sichuan Changhong Electronic Holdings Limited, the Supervisor of SichuanChanghong Electric Co.,Ltd. and the Director of the Company.
（4）Cheng Ping, male, Han, born in September 1969 in Pujiang, Sichuan, bachelor's degree in Radio Technologyfrom the Radio Department of University of Electronic Science and Technology of China.He has served as the headof the Technical Management Section of the Technical Quality Department and the Planning TechnologyDepartment of Sichuan Changhong Electric Co.,Ltd., concurrently as the General Manager of SichuanHongdianDigital Home Industry Technology Research Institute Co., Ltd., the director, the deputy head and head ofthe Science and Technology Management Department of Sichuan Changhong Electric Co.,Ltd. He is currently thehead of Strategy and Technology Development Department of Sichuan Changhong Electronic Holdings Limited,the director of Sichuan Changhong Intelligent Health Technologies Co., Ltd., the director of Sichuan ChanghongEducation Technology Co., Ltd., the director of Zhongjiu Shining Medical Technology Co., Ltd., and the director ofthe Company.
（5）Zhong Ming, male, the Han nationality from Meishan, Sichuan Province, was born in November 1972,member of CPC, a senior engineer, doctoral degree, EMBA degree from University of Science and Technology ofChina, PhD degree in Engineering Thermophysics. He successively served as deputy director of researchinstitution of Sichuan Changhong Air-conditioner Co., Ltd., deputy GM of Sichuan Changhong Air-conditionerCo., Ltd. and technical director of household appliance group of Sichuan Changhong Electric Co., Ltd. He servesas director President and Party Secretary of the Company currently , Chairman of Zhongshan MeilingWulianTechnology Co., Ltd., Director of SichuangChanghong Air-conditioning Co., Ltd., and Director of ZhongkeMeiling Low Temperature Technology Co., Ltd.
（6）Fang Wei, male, Han, born in September 1969 in Wuhu, Anhui Province, member of the Communist Party ofChina, Senior Accountant, college degree, has served as the head of Fund Section of the Finance Department ofHefei Sifang Chemical Group Limited Liability Company, the deputy head and head of the Planning and FinanceDepartment of Hefei Industrial Investment Holdings Co., Ltd., and the General Manager of the Planning andFinance Department of Hefei Industrial Investment Holdings (Group) Co., Ltd.He is currently the Chief Economistof Hefei Industrial Investment Holdings (Group) Co., Ltd. and the Director of the Company.
（7）Mou Wen, female, Han, born in September 1965 in Hengshan, Hunan Province, master's degree in BusinessManagement from Sichuan University.She used to serve as a lecturer in the Business School of Sichuan University,an associate professor of accounting in the Business School of Sichuan University, an independent director of TibetMining Development Co., Ltd., Sichuan Jinlu Group Co., Ltd., Changhong Huayi Compressor Co., Ltd., JinhuiLiquor Co., Ltd., Sichuan Teway Food Co., Ltd., Hebei Baoli Engineering Equipment Corporation Limited, FulinPrecision Machining Co.,Ltd., and Chengdu Silicon Treasure Technology Co., Ltd., an independent director of
Sichuan Junyi Digital Technology Co., Ltd., and a member of the Investment Decision Advisory Committee ofSichuan Chuanjiao Road & Bridge Co., Ltd., and a financial consultant of Sichuan Dakar Electric Co., Ltd. She iscurrently an associate professor of accounting and a master tutor at the Business School of Sichuan University, anindependent director of Tibet Mining Development Co., Ltd., an independent director of Chengdu RuixueFengtaiPrecision Machinery Co., Ltd., and an independent director of the Company.
（8）Hong yuanjia, male, Han nationality, born in February 1975, Shantou, Guangdong, holds a master degree,graduated from Shanghai University of Finance and Economics majoring in international business management,and is Fudan University MPAcc (Master of Accounting), CPA, International Accountant (AIA), intermediateaccountant, and intermediate economist. He once served as the foreign currency payable supervisor andinvestment supervisor of China Eastern Airlines Co., Ltd., the deputy manager of the financial department of theShanghai Representative Office of SanchengHongji (Hong Kong) Co., Ltd., the accounting manager of GeneralElectric Lighting Co., Ltd., the accounting manager of General Electric Industrial Supply Co., Ltd., and ChiefFinancial Officer of Lingji Electronics (General Electrical Industry System Power Supply). He is currently theChief Financial Officer of Asia Pacific Region of Yiluo Technology (Shanghai) Co., Ltd. and an independentdirector of the Company.
（9）Mr. Cheng Wenlong, male, Han, born in September 1969 in Ningguo City, Anhui Province,doctoral degree inEngineering Thermophysics from China University of Science and Technology.He has served as a teaching assistant,lecturer, associate professor and professor at the School of Engineering Science, University of Science andTechnology of China.He is currently a professor and doctoral supervisor at the School of Engineering Science,University of Science and Technology of China, a vice chairman of Anhui Refrigeration Society, an independentdirector of Beijing Zhongshi Weiye Technology Co., Ltd. and independent director of the Company.
（10）Qiu Jin, male, Han, born in May 1974 in Jiangyou, Sichuan, bachelor's degree in accounting from SouthwestUniversity of Science and Technology.He began to work in October 1996, and served as an accountant and chiefaccountant in Jiangyou Post Office, a project manager of Economic Benefit Department of Sichuan ChanghongElectric Co.,Ltd., head of Audit Department of Changhong Meiling Co., Ltd., head of Marketing Audit Section andhead of Economic Benefit Section of Sichuan Changhong Electric Co.,Ltd., head of Audit Department of SichuanElectronic Military Industry Group Co., Ltd., and an senior manager of Intelligent Integration of SichuanChanghong Electronic Holdings Limited He is currently the director of the Audit Department of SichuanChanghong Electric Co.,Ltd. and the chairman of the Board of Supervisors of the Company.
（11）Ma Yu, male, Hui, born in June 1982 in Mianyang, Sichuan, bachelor's degree in Trade and Economics fromXi'an JiaotongUniversity.He began to work in July 2005, and has served as an overseas sales manager and a productplanning manager of product planning center of Sichuan Changhong Electric Co.,Ltd., and an operation manager ofStrategic Management Department of Sichuan Changhong Electronic Holdings Limited.He is currently the riskcontrol manager of the Compliance and Risk Control Department of Sichuan Changhong Electronic HoldingsLimited and the supervisor of the Company.
（12）Ji Ge, female, Han, born in January 1982 in Nanyang, Henan Province, bachelor's degree in law from HunanUniversity and master's degree in law from Anhui University.She began to work in July 2005, and has served as anLegal Commissioner, Legal Officer, Intellectual Property Director of the Legal Department, Head of the Legal
Department, Head of the Board Office and Compliance and Risk Control Department of Changhong Meiling Co.,Ltd.She is currently the director of the Board Office and Compliance Risk Control Department, employeesupervisor, director of the Party Committee Office and director of the Committee Office for Discipline Inspection ofthe Company.
（13）Tang Youdao, male, Han, born in July 1970 in Xuancheng, Anhui Province, bachelor's degree in IndustrialManagement Engineering from Wuhan University of Technology. He has served as an overseas marketing manager,head of Marketing Department, head of Overseas Marketing Department, general manager of Overseas BusinessDepartment, general manager of Ice Washing Business Headquarters and general manager of International IceWashing Business Department. He is currently the vice president of the Company (acting as the president).
（14）Kou Huameng, male, the Han nationality from Yanting, Sichuan Province, was born in February 1970,Member of CPC, master degree candidate, EMBA graduate from UESTC. He served successively as deputydirector of production office of Sichuan Changhong Electric Co., LTD, director of Guangxi Marketingmanagement Committee, director of Fujian-Jiangxi Marketing Management, General Manager of ChanghongAudiovisual Company and director and GM of Guangdong Changhong Digital Technology Co., Ltd.; SichuanChanghong Electric Co., Ltd, director of development management department of Sichuan Changhong ElectricCo., Ltd., and director of ChanghongHuayi Compressor Co., Ltd.; now he serves as director and deputy presidentof the Company.
（15）Hu Zhaogui, male, the Han nationality, born in Feixi Hefei in October 1974, a member of the CommunistParty of China, holds a master’s degree, graduated from Chongqing University as a master of businessadministration. He has served successively as the head of marketing and sales department stationed abroad ofHefei Meiling Co., Ltd., assistant president and general manager of the freezer and washing machine businessdivision, and general manager of the domestic marketing division. He is currently the director and vice presidentof the Company and the general manager of Sichuan Changhong Air Conditioner Co., Ltd.
（16）Li Xia,female, the Han nationality from Qionglai, Sichuan Province, was born in October 1980, Member ofCPC and Intermediate Accountant with Master Degree. She graduated from Accounting Department of SichuanUniversity Business and Management School. She ever was Project Manager in Financing & Acquisition Officeof Asset Management Department and Business Executive in Board Office of Sichuan Changhong Electronic Co.,Ltd. she took the posts of Deputy GM and Financial Supervisor of Sichuan Changhong Innovation Investment Co.,Ltd., and chairman of supervisory committee ofZhongkeMeiling Cryogenic Technology Co., Ltd. She is theSecretary of the Board, deputy secretary of the Party, secretary of discipline inspection commission and generalcounselof the Company recently.
（17）Pang Haitao, male, Han nationality, was born in Qionghai, Hainan in May 1975, a member of theCommunist Party of China, a senior accountant, a senior political engineer, and a bachelor degree holder, andearned the EMBA degree from Jiangxi University of Finance and Economics. He used to be a member of thefinance department, the director of related transactions and the director of capital operations of SichuanChanghong Electric Co., Ltd., the chief of finance office of Guangdong Changhong Electronics Co., Ltd., thedirector ofgeneral ledger, the head of general management office, and the head of general ledger managementoffice of the finance department of Sichuan Changhong Electric Co., Ltd., the deputy general manager and chieffinancial officer of Sichuan Changhong Development Co., Ltd., the deputy general manager and chief accountantof Huayi Compressor Co., Ltd. Currently he is the chief financial officer (person in charge of finance) of theCompany.
2. Post-holding in shareholder’s unit
√ Applicable □ Not applicable
| Name | Shareholder’s unit | Title | Start date of office term | End date of office term | Drawing remuneration and allowance from shareholder’s unit (Y/N) |
| Wu Dinggang | Sichuan Changhong Electric Co., Ltd. | Deputy GM | 2019.1.11 | 2026.12.28 | Yes |
| Zhai Qilin | Sichuan Changhong Electric Co., Ltd. | Secretary of the Board of Directors | 2020.12.16 | 2026.12.28 | Yes |
| Chief Compliance Officer | 2022.11.25 | 2026.12.28 | No | ||
| General counsel | 2022.02.14 | - | No | ||
| Director of the office of the Board of Directors | 2021.03.29 | - | No | ||
| Director of the management office of ESG | 2023.01.09 | - | No | ||
| The Minister of the General Management Department | 2024.01.26 | - | No | ||
| Yi Suqin | Sichuan Changhong Electric Co., Ltd. | Supervisor | 2023.12.29 | 2026.12.28 | No |
| Fang Wei | Hefei Industrial Investment Holding （Group）Co., Ltd. | Chief Economist | 2022.01.11 | - | Yes |
| Qiu Jin | Sichuan Changhong Electric Co., Ltd. | Audit minister | 2021.04.01 | - | Yes |
| Post-holding in shareholder’s unit | N/A | ||||
3. Post-holding in other unit
√ Applicable □ Not applicable
| Name | Other unit | Title | Start date of office term | End date of office term | Drawing remuneration and allowance from other unit (Y/N) |
| Zhao Qilin | Sichuan Changhong Innovation Investment Co., Ltd. | Director | 2021.01.21 | - | No |
| WIDEMIRACLELIMITED | Director | 2014.07.14 | - | No | |
| Ganghong Industrial Co., Ltd. | Director | 2013.06.18 | - | No | |
| SUFFICIENTVALUEGROUPLIMITED | Director | 2013.06.18 | - | No | |
| ChanghongJiahua (Hong Kong) Information Products Co., Ltd. | Director | 2021.01.08 | - | No | |
| Anjian Holdings Co., Ltd. | Director | 2012.01.19 | - | No | |
| Guangzhou Huanwang Technology Co., Ltd. | Director | 2022.05.23 | No |
| Changhong Jiahua Holdings Co., Ltd. | Executive director | 2023.03.17 | - | No | |
| MianyangChanghong Technology Co., Ltd. | Chairman | 2023.08.15 | - | No | |
| Sichuan Changhong Minsheng Logistic Co., Ltd. | Chairman | 2024.05.16 | - | No | |
| Yi Suqin | Sichuan Changhong Electronics Holding Group Co., Ltd.. | Minster of finance | 2024.01.26 | - | Yes |
| Sichuan Changhong Group Finance Co., Ltd. | Director | 2024.07.25 | - | No | |
| Cheng Ping | Sichuan Changhong Electronics Holding Group Co., Ltd. | Minister of Strategy and Science and Technology Development | 2023.10.27 | - | Yes |
| ZhongjiuShanguang Medical Technology Co., Ltd. | Director | 2022.09.15 | - | No | |
| Sichuan Changhong New Material Technology Co., Ltd. | Director | 2023.02.10 | - | No | |
| Sichuan ChanghongEducation Technology Co., Ltd | Director | 2018.04.20 | - | No | |
| Sichuan Changhong Smart Health Technology Co., Ltd | Director | 2023.08.04 | - | No | |
| Sichuan Ansifei Technology Co., Ltd. | Chairman | 2023.07.26 | - | No | |
| Zhong Ming | Sichuan Qiruk Technology Co., Ltd. | Director, General Manager | 2024.12.10 | 2026.12.09 | Yes |
| Fang Wei | Hefei Venture Capital Guide Fund Co., Ltd | Chairman | 2024.02.02 | - | No |
| efei Science and Technology Rural Commercial Bank Co., Ltd | Director | 2022.07.09 | - | No | |
| Science Island Hefei Technology Innovation Engineering Institute Co., Ltd | Chairman | 2023.05.02 | - | No | |
| Hefei Life Health Industry Development Co., Ltd | Chairman | 2024.01.10 | - | No | |
| Ma'Anshan Iron and Steel (Hefei) Co., LTD | Director | 2022.04.15 | No | ||
| Changxin Technology GroupCo., Ltd. | Director | 2022.09.19 | No | ||
| Hefei Medical Device Inspection and Testing Center Co., Ltd | Executive director | 2024.05.27 | No | ||
| Anhui Amway Materials Technology Co., Ltd | Director | 2024.02.02 | No |
| Mou Wen | Business School of Sichuan University | Associate professor, master tutor | 1995.02 | - | Yes |
| Tibet Mining Development Co., Ltd. | Independent director | 2021.03.09 | 2027.06.01 | Yes | |
| hengduRuixueFengtai Precision Electronics Shares Co., Ltd. | Independent director | 2025.01.01 | 2027.12.31 | Yes | |
| Hong Yuanjia | YiluoTechnology( Shanghai) Co., Ltd. | CFO of Asia pacific | 2014.06 | - | Yes |
| Cheng Wenlong | University of Science and Technology of China | Teacher and doctoral supervisor | 2014.06.01 | - | Yes |
| Beijing Zhongshi Weiye Technology Co., Ltd | Independent director | 2022.01.24 | 2025.01.24 | Yes | |
| Qiu Jin | Sichuan Changhong Jiahua Information Products Co., Ltd | Chairman of the Board of Supervisors | 2023.05.31 | 2026.05.30 | No |
| Sichuan Hongxin Software Co., Ltd | Chairman of the Board of Supervisors | 2022.07.01 | 2025.06.30 | No | |
| Sichuan Changhong Communication Technology Co., Ltd | Supervisor | 2018.09.13 | 2027.09.12 | No | |
| Sichuan Changhong Cloud Computing Co., Ltd | Supervisor | 2018.04.11 | 2027.04.10 | No | |
| Beijing Changhong Information Technology Co., LTD | Supervisor | 2021.12.02 | 2027.12.01 | No | |
| Sichuan Changhong International Hotel Co., Ltd | Supervisor | 2024.04.10 | 2027.04.09 | No | |
| Sichuan Temons Hotel Co., Ltd | Supervisor | 2024.04.15 | 2027.04.14 | No | |
| Ma Yu | Sichuan Changhong Electronics Holding Group Co., Ltd | Manager of the Compliance and Risk Control Department | 2021.04 | - | Yes |
| Hu Zhaogui | Sichuan Zhiyijia Network Technology Co., Ltd. | Director | 2019.07.25 | - | No |
| Sichuan TianyouGuigu Technology Co., Ltd. | Director | 2018.01.16 | - | No | |
| Chengdu Guigu Environmental Tech. Co., Ltd. | Director | 2018.06.30 | - | No | |
| Pang Haitao | Hefei Xingmei Asset Management Co., Ltd. | Director | 2018.02.05 | - | No |
| Post-holding in other unit | N/A | ||||
4. Punishment of securities regulatory authority in recent three years to the company’s current andoutgoing directors, supervisors and senior management during the reporting period
□ Applicable √ Not applicable
(iii) Remuneration of directors, supervisors and senior executives
1. Decision-making, determine basis and actually payment of remuneration for directors, supervisors andsenior executives
(1) Procedure for deciding remunerations of directors, supervisors and senior managementImplemented in line with laws, regulations and relevant rules of “Company Law”, “Article of Association” and“Enforcement Regulation of Remuneration and Evaluation Committee of the Board”, including:
Allowance plan of independent directors are implemented after deliberated in the Board and approved inShareholders’ General Meeting. Other directors and non-staff supervisors except independent directors arereceived no remuneration from the Company.Remuneration of senior executives are deliberated and approved by the Board according to remunerationevaluation plan together with opinions of Remuneration and Evaluation Committee.The remuneration appraisal and payment for directors and senior executive of the Company for Current Year willdisclose in the Annual Report after review without objection from Remuneration & Appraisal Committee of theBoard and submit to the BOD for Current Year.
(2) Bases on which remunerations of directors, supervisors and senior management are decidedAccording to the company's basic salary system, combined with the industry salary level and salary orientation,following the salary management concept of "post value reflected and performance-oriented", giving full play tothe incentive function of salary, closely combining employee compensation with the company's overallperformance, according to the company's performance management rules, the annual performance evaluation onthe work of senior management personnel is carried out, and the performance salary is cashed according to theperformance evaluation results.
(3) Actual payment of remunerations of directors, supervisors and senior managementAllowance of the independent directors are paid by the standards approved in Annual Shareholders’ GeneralMeeting, other director, who serves as senior executive at the same time, and non-staff supervisors exceptindependent directors did not received remuneration from the Company; remunerations for senior executives ofthe Company are paid strictly by the unify remuneration valuation mechanism of the Company.Directors, supervisors and senior executives of the Company has 17 in total up to 31 December 2024, actually 10person receiving remuneration from the Company, 3 staff supervisors are received their remuneration by actualpositions (non-supervisor post); furthermore, 3 independent directors are received the allowance monthly from theCompany; the Company will pay remuneration to 5 senior executives in line with the performance appraisal bymonthly, quarterly and annual.During the reporting period, the Company has established the executive compensation and performancemanagement program for the senior management of 2022 in accordance with the main scope, the responsibilities,the importance of the management positions of the senior management, and the compensation level of otherrelevant company and position, the program includes but not limited to the company's key performance indicator(KPI) and performance evaluation criteria, procedures and major evaluation system; the major programs of thereward and punishment; review the performance of duties of the company's senior management and conduct theannual performance appraisal.
2. Remuneration for directors, supervisors and senior executives in reporting period
In RMB 10,000
| Name | Sex | Age | Title | Post status | Total remuneration obtained from the Company (before taxes) | Whether remuneration obtained from related party of the Company |
| Wu Dinggang | Male | 52 | Chairman | In Office | 0 | Yes |
| Zhao Qilin | Male | 49 | Director | In Office | 0 | Yes |
| Yi Suqin | Female | 46 | Director | In Office | 0 | Yes |
| Cheng Ping | Male | 55 | Director | In Office | 0 | Yes |
| Zhong | Male | 52 | Director | In Office | 137.49 | Yes |
| Ming | ||||||
| Fang Wei | Male | 55 | Director | In Office | 0 | Yes |
| Mou Wen | Female | 58 | Independent director | In Office | 11.9 | No |
| Hong Yuanjia | Male | 49 | Independent director | In Office | 11.9 | No |
| Cheng Wenlong | Male | 55 | Independent director | In Office | 6.35 | No |
| Qiu Jin | Male | 50 | Chairman of Supervisory | In Office | 0 | Yes |
| Ma Yu | Male | 42 | Supervisor | In Office | 0 | Yes |
| Ji Ge | Female | 43 | Staff supervisor | In Office | 49.69 | No |
| Tang Youdao | Male | 54 | Vice president | In Office | 214.4 | No |
| Kou Huameng | Male | 55 | Vice president | In Office | 94.11 | No |
| Hu Zhaogui | Male | 50 | Vice president | In Office | 112.22 | No |
| Li Xia | Female | 44 | Vice president, Secretary of the Board | In Office | 82.14 | No |
| Pang Haitao | Male | 49 | CFO | In Office | 94.87 | No |
| Yong Fengshan | Male | 56 | Director | Dimission | 0 | No |
| Zhao Gang | Male | 46 | Independent director | Dimission | 5.55 | No |
| Shao Min | Male | 42 | Chairman of Supervisory | Dimission | 0 | Yes |
| He Xintan | Male | 44 | Supervisor | Dimission | 0 | Yes |
| Huang Hong | Female | 54 | Supervisor | Dimission | 0 | Yes |
| Sun Hongying | Female | 53 | Staff supervisor | Dimission | 35.52 | No |
| Huang Danian | Male | 55 | Vice president | Dimission | 64.5 | No |
| Total | -- | -- | -- | -- | 920.64 | -- |
OtherNote
□Applicable √Not applicable
VI. Responsibility performance of directors during the reporting period(i) The board of directors during the reporting period
| Session of meeting | Date of meeting | Disclosure date | Meeting resolutions |
| The 40th session of 10thBOD | February 19,2024 | February 20,2024 | The Board of Directors reviewed and approved 3 proposals, namely, Proposal on Establishing ESG Management Organizational Structure of the Company, Proposal on Formulating Detailed Rules for the Implementation of ESG Management Committee of the Board of Directors, and Proposal on the Refrigerator Front-end Capacity Improvement Project of Hefei Manufacturing Base of the Company. for details, please refer to the "Resolution Notice of the 40th session of 10thBOD" (No. 2024-004) on the cninfo website (Juchao Website (www.cninfo.com.cn)). |
| The 41stsession of 10thBOD | March 14,2024 | March 15,2024 | The Board of Directors reviewed and approved the Proposal on Establishing a wholly-owned Subsidiary by Sichuan Changhong Air Conditioning Co., Ltd.for details, please refer to the "Resolution Notice of the 41stsession of 10thBOD" (No. 2024-006) on the cninfo website (Juchao Website (www.cninfo.com.cn)). |
| The 42ndsession of 10thBOD | March 28,2024 | March 30,2024 | The Board of Directors reviewed and approved 33 proposals, including 2023 Annual Report and Summary of Annual Report, 2023 Work Report of the Board of Directors, 2023 Work Report of the President, 2023 Financial Statement Report and 2023 Debriefing Report of Independent Directors. for details, please refer to the "Resolution Notice of the 42ndsession of 10thBOD" (No. 2024-007) on the cninfo website (Juchao Website (www.cninfo.com.cn)). |
| The 43rd session of 10thBOD | April 19,2024 | April 20,2024 | The Board of Directors reviewed and approved 5 proposals, including the Report on the First Quarter of 2024, the Proposal on Provision for Credit Impairment and the Proposal on Provision for Asset Impairment. for details, please refer to the "Resolution Notice of the 43rdsession of 10thBOD" (No. 2024-020) on the cninfo website (Juchao Website (www.cninfo.com.cn)). |
| The 44thsession of 10thBOD | May 31,2024 | June 1,2024 | The Board of Directors reviewed and approved 7 proposals, including the Proposal on Amending Some Provisions of the Company's Articles of Association, the Proposal on Amending Some Articles of the Company's Authorization Management System and the Proposal on Increasing the Use of the Company's Own Idle Funds to Invest in Wealth Management Products. for details, please refer to the "Resolution Notice of the 44thsession of 10thBOD" (No. 2024-026) on the cninfo website (Juchao Website (www.cninfo.com.cn)). |
| The 1sr session of 11thBOD | June 18,2024 | June 19,2024 | The Board of Directors reviewed and approved 8 |
| proposals, including the Proposal on Electing the Chairman of the 11th Board of Directors of the Company and the Proposal on Establishing Special Committees under the 11th Board of Directors of the Company. for details, please refer to the "Resolution Notice of the 1stsession of 11thBOD" (No. 2024-038) on the cninfo website (Juchao Website (www.cninfo.com.cn)). | |||
| The 2ndsession of 11thBOD | August 15,2024 | August 17,2024 | The Board of Directors reviewed and approved 7 proposals, including the Full Text and Summary of the Semi-annual Report in 2024, Proposal on Provision for Credit Impairment and Proposal on Provision for Asset Impairment. for details, please refer to the "Resolution Notice of the 2ndsession of 11thBOD" (No. 2024-041) on the cninfo website (Juchao Website (www.cninfo.com.cn)). |
| The 3rd session of 11thBOD | October 11,2024 | October 12,2024 | The Board of Directors reviewed and approved 20 proposals, including Proposal on Acquisition of Equity and Related Transactions of Hefei Changhong Industry Co., Ltd. and Proposal on Increasing the Estimated Daily Related Transactions in 2024. for details, please refer to the "Resolution Notice of the 3rdsession of 11thBOD" (No. 2024-046) on the cninfo website (Juchao Website (www.cninfo.com.cn)). |
| The 4thsession of 11thBOD | October 22,2024 | October 23,2024 | The Board of Directors reviewed and approved 4 proposals, including the Report on the Third Quarter of 2024 and the Proposal on Provision for Credit Impairment. for details, please refer to the "Resolution Notice of the 4thsession of 11thBOD" (No. 2024-055) on the cninfo website (Juchao Website (www.cninfo.com.cn)). |
| The 5thsession of 11thBOD | November 4,2024 | November 5,2024 | The Board of Directors reviewed and approved one proposal, namely the Proposal on Extension and Related Transactions of Sichuan Hongyun New Generation Information Technology Venture Capital Fund Partnership Enterprise (Limited Partnership). for details, please refer to the "Resolution Notice of the 5thsession of 11thBOD" (No. 2024-061) on the cninfo website (Juchao Website (www.cninfo.com.cn)). |
| The 6thsession of 11thBOD | November 22,2024 | November 23,2024 | The Board of Directors reviewed and approved the Proposal on Authorizing the Company's Vice President Mr. Tang Youdao to act as President for details, please refer to the "Resolution Notice of the 6thsession of 11thBOD" (No. 2024-065) on the cninfo website (Juchao Website (www.cninfo.com.cn)). |
| The 7thsession of 11thBOD | December 2,2024 | - | The Board of Directors reviewed and approved 4 proposals, including the Proposal on Improving the Technical Capability of the Company's Testing Center |
| and the Proposal on the Technology Platform Switching and Manufacturing System Capability Improvement Project of the Subsidiary Sichuan Changhong Air Conditioning Co., Ltd. | |||
| The 8thsession of 11thBOD | December 11,2024 | December 12,2024 | The Board of Directors reviewed and approved 7 proposals, including the Proposal on Predicting Daily Related Transactions in 2025 and the Proposal on Predicting Continuous Related Transactions between the Company and Its Subsidiaries and Sichuan Changhong Group Finance Co., Ltd. in 2025 for details, please refer to the "Resolution Notice of the 8thsession of 11thBOD" (No. 2024-067) on the cninfo website (Juchao Website (www.cninfo.com.cn)). |
| The 9thsession of 11thBOD | December 16,2024 | —— | It reviewed and approved the Proposal on Offering Special Performance Awards to the Company's Senior Management in 2023. |
| The 10hsession of 11thBOD | December 31,2024 | January 2,2025 | The Board of Directors reviewed and approved one proposal, namely the Proposal on Amending the "Risk Disposal Plan of Changhong Meiling Co., Ltd. on the Financial Business of Deposits and Loans in Sichuan Changhong Group Finance Co., Ltd.". for details, please refer to the "Resolution Notice of the 10thsession of 11thBOD" (No. 2025-001) on the cninfo website (Juchao Website (www.cninfo.com.cn)). |
(ii) The attending of directors to Board meetings and shareholders general meeting
| The attending of directors | |||||||
| Director | Times of Board meeting supposed to attend in the report period | Times of present in person | Times of attending by communication | Times of entrusted presence | Times of Absence | Absent the Meeting for the second time in a row (Y/N) | Times of attending the shareholder general meeting |
| Wu Dinggang | 15 | 3 | 12 | 0 | 0 | No | 3 |
| Zhao Qilin | 15 | 3 | 12 | 0 | 0 | No | 3 |
| Yi Suqin | 10 | 2 | 8 | 0 | 0 | No | 1 |
| Cheng Ping | 10 | 2 | 8 | 0 | 0 | No | 0 |
| Zhong Ming | 15 | 3 | 12 | 0 | 0 | No | 3 |
| Fang Wei | 10 | 2 | 8 | 0 | 0 | No | 1 |
| Mou Wen | 15 | 3 | 12 | 0 | 0 | No | 3 |
| Hong Yuanjia | 15 | 2 | 13 | 0 | 0 | No | 3 |
| Cheng Wenlong | 10 | 2 | 8 | 0 | 0 | No | 1 |
| Yong Fengshan | 5 | 0 | 5 | 0 | 0 | No | 0 |
| Kou Huameng | 5 | 1 | 4 | 0 | 0 | No | 2 |
| Hu Zhaogui | 5 | 1 | 4 | 0 | 0 | No | 1 |
| Zhao Gang | 5 | 1 | 4 | 0 | 0 | No | 2 |
Explanation of absent the Board Meeting for the second time in a rowDuring the reporting period, none of the directors failed to attend two consecutive Board Meeting in person.(iii) Objection for relevant events from directorsWhether directors come up with objection about company’s relevant matters or not
□ Yes √ No
Directors has no objections for relevant events in reporting period(iv) Other explanation about responsibility performance of directorsWhether the opinions from directors have been adopted or not
√ Yes □ No
During the reporting period, the directors of the company strictly followed the Company Law, the Securities Law,the Listing Rules of Shenzhen Stock Exchange, and the Self-Discipline Supervision Guidelines for ListedCompanies of Shenzhen Stock Exchange No. 1 - Standardized Operation of Main Board Listed Companies" andother laws and regulations, actively attended the company's board meetings and the company's general meeting ofshareholders, performed duties conscientiously and diligently, made prudent and scientific decisions on variousmatters reviewed by the company's board meetings, and all their professional suggestions on the company’s majordecisions have been adopted .
VII. The special committees under the board during the reporting period
| Committee name | Members | Number of meetings held | Date of meeting | Meeting content | Important comments and suggestions made | Other performance of duties | Specific circumstances of the objection (if applicable) |
| Strategy Committee | Wu Dinggang, Zhao QiLin, Zhong Ming, Kou Huameng, Hu Zhaogui, Yong Fengshan, Zhao Gang | 3 | March 9,2024 | A total of 1 proposal was reviewed, namely the Proposal on Establishing a wholly-owned Subsidiary by Sichuan Changhong Air Conditioning Co., Ltd. | The proposal was deliberated and passed and agreed to be submitted to the board of directors of the company for consideration. | Not applicable | No |
| March 18,2024 | A total of one proposal was reviewed, namely the Proposal on the Company's Development Plan in 2024. | The proposal was deliberated and passed and agreed to be submitted to the board of directors of the company for consideration. | Not applicable | No | |||
| Wu Dinggang, Zhao Qilin, Yi Suqin, Cheng Ping, Zhong Ming, Fang Wei, Cheng Wenlong | October 8,2024 | A total of 1 proposal was reviewed, namely the Proposal on Acquisition of Equity and Related Transactions of Hefei Changhong Industry Co., Ltd. | The proposal was deliberated and passed and agreed to be submitted to the board of directors of the company for consideration. | Not applicable | No | ||
| Audit Committee | Hong Yuanjia, Mou Wen, Zhao Gang | 7 | January 12,2024 | A total of 2 proposals were reviewed, namely, the Proposal on the Company's 2023 Financial Accounting Statement and Internal Control Audit Schedule and the Company's 2023 Unaudited Financial Accounting Statement. | All proposals were deliberated and passed. | Not applicable | No |
| March 12,2024 | A total of 1 proposal was deliberated, namely the First Draft of the Audit of the Company's Financial Accounting Statements in | The proposal were deliberated and passed | Not applicable | No |
| 2023. | ||||||
| March 27,2024 | A total of 6 proposals were reviewed, namely the Audited Financial Accounting Report of the Company in 2023, Audit Report on Internal Control in 2023, Summary Report on the Audit of the Company by ShineWing Certified Public Accountants in 2023, Report of the Audit Committee of the Board of Directors of the Company on the Performance Evaluation and Performance Supervision of Accounting Firms in 2023, Proposal on Changing the Audit Institution of the Financial Report and Internal Control in 2024 and Proposal on the Company's Forward Foreign Exchange Fund Trading Business. | All the proposals were reviewed and approved, and five proposals were agreed to be submitted to the Board of Directors of the Company for review, namely, Audited Financial Accounting Report of the Company in 2023, Audit Report of Internal Control in 2023, Report of the Audit Committee of the Board of Directors of the Company on the Performance Evaluation and Performance Supervision of Accounting Firms in 2023, Proposal on Changing Audit Institutions of Financial Report and Internal Control in 2024 and Proposal on the Company's Forward Foreign Exchange Fund Trading Business. | Not applicable | No | ||
| April 17,2024 | A total of 1 proposal was reviewed, namely the Financial Statement of the Company for the First Quarter of 2024 | The proposal was deliberated and passed and agreed to be submitted to the board of directors of the company for consideration. | Not applicable | No | ||
| Mou Wen , Wu Dinggang, Zhao Qilin, Hong Yuanjia, Cheng Wenlong | June 18,2024 | A total of 1 proposal was reviewed, namely the Proposal on Appointing the Financial Controller of the Company. | The proposal was deliberated and passed and agreed to be submitted to the board of directors of the company for consideration. | Not applicable | No | |
| August 5,2024 | A total of 1 proposal was deliberated, namely the Semi-annual Financial Report of the Company in 2024. | The proposal was deliberated and passed and agreed to be submitted to the board of directors of the company for consideration. | Not applicable | No | ||
| October 18,2024 | A total of 1 proposal was reviewed, namely the Financial Report of the Company for the Third Quarter of 2024. | The proposal was deliberated and passed and agreed to be submitted to the board of directors of the company for consideration. | Not applicable | No |
| Remuneration and Appraisal Committee | Wu Dinggang, Mou Wen, Hong Yuanjia, Zhao Gang | 3 | March 18,2024 | A total of 1 proposal was reviewed, namely, the Assessment and Payment of the Company's Directors and Senior Management in 2023. | The proposal was deliberated and passed and agreed to be submitted to the board of directors of the company for consideration. | Not applicable | No |
| May 29,2024 | A total of 1 proposal was reviewed, namely the Proposal on Determining the Allowance Standard for Independent Directors of the 11th Board of Directors of the Company | The proposal was deliberated and passed and agreed to be submitted to the board of directors of the company for consideration. | |||||
| Hong Yuanjia, Wu Dinggang, Mou Wen, Cheng Wenlong | December 14,2024 | A total of 1 proposal was reviewed, namely the Proposal on Offering Special Performance Awards to the Company's Senior Management in 2023 | The proposal was deliberated and passed and agreed to be submitted to the board of directors of the company for consideration. | Not applicable | No | ||
| Nomination committee | Mou Wen, Wu Dinggang, Hong Yuanjia, Zhao Gang | 3 | May 29,2024 | A total of 2 proposals were reviewed, namely the Proposal on Qualification Examination of Candidates for Non-independent Directors to be Elected by the 11th Board of Directors and Proposal on Qualification Examination of Candidates for Independent Directors to be Elected by the 11th Board of Directors | The proposal was deliberated and passed and agreed to be submitted to the board of directors of the company for consideration. | Not applicable | No |
| Cheng Wenlong, Wu Dinggang, Zhong Ming, Mou Wen, Hong Yuanjia | June 18,2024 | A total of 2 proposals were reviewed, namely the Proposal on Qualification Examination of the President of the Company to be Appointed and Proposal on Qualification Examination of the Vice President, Secretary of the Board of Directors and Financial Controller of the Company to be Appointed | The proposal was deliberated and passed and agreed to be submitted to the board of directors of the company for consideration. | Not applicable | No | ||
| November 20,2024 | A total of 1 proposal was reviewed, namely the Proposal on Authorizing the Company's Vice President Mr. Tang Youdao to act as President | The proposal was deliberated and passed and agreed to be submitted to the board of directors of the company for consideration. | Not applicable | No | |||
| ESGadministrative Committee | Wu Dinggang, Zhao Qilin, Zhong Ming, Kou Huameng, Hu Zhaogui, Mou Wen | 1 | March 18,2024 | A total of 1 proposal was reviewed, namely the Report on Environment, Society and Governance (ESG) of the Company in 2023 | The proposal was deliberated and passed and agreed to be submitted to the board of directors of the company for consideration. | Not applicable | No |
| Special committee of independent directors | Mou Wen, Hong Yuanjia, Zhao Gang | 6 | March 18,2024 | A total of 3 proposals were reviewed, namely, the Proposal on Increasing Daily Related Transactions in 2024, Profit Distribution Plan of the Company for 2023 and Report on the Company's Continuous Risk Assessment of Sichuan Changhong Group Finance Co., Ltd. | The proposal was deliberated and passed and agreed to be submitted to the board of directors of the company for consideration. | Not applicable | No |
| Mou Wen, Hong Yuanjia, Cheng Wenlong | August 5,2024 | A total of 2 proposals were reviewed, namely, Report on the Company's Continuous Risk Assessment of Sichuan Changhong Group Finance Co., Ltd. and Proposal on Increasing the Estimated Daily Related Transaction Limit in 2024. | The proposal was deliberated and passed and agreed to be submitted to the board of directors of the company for consideration. | Not applicable | No | ||
| October 8,2024 | A total of 20 proposals were reviewed, namely the Proposal on Acquisition of Equity and Related Transactions of Hefei Changhong Industry Co., Ltd. and Proposal on Increasing the Estimated Daily Related Transactions in 2024. | The proposal was deliberated and passed and agreed to be submitted to the board of directors of the company for consideration. | Not applicable | No | |||
| November 1,2024 | A total of 1 proposal was reviewed, namely the Proposal on Extension and Related Transactions of Sichuan Hongyun New Generation Information Technology Venture Capital Fund Partnership Enterprise (Limited Partnership). | The proposal was deliberated and passed and agreed to be submitted to the board of directors of the company for consideration. | Not applicable | No | |||
| December 7,2024 | A total of 3 proposals were reviewed, namely the Proposal on Predicting Daily Related Transactions in 2025, Proposal on Predicting Continuous Related Transactions between the Company and Its Subsidiaries and Sichuan Changhong Group Finance Co., Ltd. in 2025, and Proposal on Continuous Risk Assessment Report of Sichuan Changhong Group Finance Co., Ltd. | The proposal was deliberated and passed and agreed to be submitted to the board of directors of the company for consideration. | Not applicable | No | |||
| December 28,2024 | A total of 1 proposal was reviewed, namely the Proposal on Amending the Company's "Risk Disposal Plan on the Financial Business of Deposits and Loans in Sichuan Changhong Group Finance Co., Ltd.". | The proposal was deliberated and passed and agreed to be submitted to the board of directors of the company for consideration. | Not applicable | No |
VIII. Works from Supervisory CommitteeWhether the Company has risks or not in reporting period that found in supervisory activity from supervisory
committee
□Yes √ No
Supervisory committee has no objection about supervision events in reporting periodIX. Staff of the Company(i) Numbers, professional structure and education background
| On-job employee in parent company at period-end (people) | 3,918 |
| On-job employee in main subsidiary at period-end(people) | 10,737 |
| Total on-job employees at period-end(people) | 14,655 |
| Current total payroll(people) | 14,655 |
| Number of retired employees with expenses paid by the parent company and main subsidiary (people) | 57 |
| Professional structure | |
| Types of professional category | Numbers of professional category (people) |
| Production staff | 7,410 |
| Salesman | 4,458 |
| Technician | 1,911 |
| Financial staff | 292 |
| Administration staff | 584 |
| Total | 14,655 |
| Education background | |
| Type of education background | Numbers (people) |
| High school and below | 9,096 |
| Junior college | 2,282 |
| Undergraduate | 3,054 |
| Master and above | 223 |
| Total | 14,655 |
(ii) Remuneration policyThe Company formulated human resources and compensation policy conducive to sustainable development ofenterprise according to the provisions of relevant laws and policies promulgated by the state and to the Company'sactual situation.The company continued to promote the performance growth index system , defined the direction of employeeperformance growth and progress, effectively encouraged employees to take the initiative to find gaps and fillshortcomings, and continuously improved their professional ability and work efficiency. At the same time, basedon the growth level of employees, it has established a remuneration mechanism that is suitable for it, andoptimized the post value evaluation and remuneration adjustment mechanism to enhance the internal fairness andexternal competitiveness of the company's remuneration and strengthen the salary concept of "post value reflectedand performance-oriented". In order to promote the achievement of each unit's performance, the Company designeddifferentiated reward schemes according to the characteristics of different business units and based on the systembalance, so as to realize the effectiveness of positive guidance and efficiently stimulate the business vitality of eachbusiness unit. At the same time, in order to promote employees' vitality and build a multi-incentive system, itfocuses on four core dimensions: growth incentive, welfare incentive, honor incentive and emotional incentive.During the reporting period, the company further optimized the position promotion evaluation and employmentmechanism, improved the position system and the promotion channels in sequence, and further stimulated theteam's vitality through the integrating system evaluation and employment, performance growth system and othermechanisms, and matched the dynamic adjustment of remuneration; continued to promote the application ofperformance management in the whole process, optimized the application of performance communication andfeedback information methods, strengthened the application of performance results in cadre promotion and
demotion, talent selection, salary adjustment and year-end evaluation, and encouraged employees to developtogether with the company.(iii) Training plansThe company aimed at creating a learning organization, continuously optimized training and talent development,and built talent standards and competency models of each sequence based on the company's annual talentdevelopment and training program; built Meiling online learning system and knowledge asset management systemto extract and precipitate internal experience and ability; organized the implementation of internal and externalspecial precision training programs; carried out projects such as learning map and talent structure optimization,and gradually formed a growth mechanism that combined training with employee growth and career development.
1. In-depth development of the mechanism for selection, training, use and retention of reserve talents. TheCompany has established a clear talent standard evaluation model, and completed the construction of talentstandards for managerial positions, supervisors, and professional positions; It has established a succession map oftalents in key positions in each sequence, and clarified the current status of the existing talent team and thesuccession system of different types of talents in the future. The Company focuses on optimizing the talent reserveechelon structure of the "Yongquan Plan", and optimizes and adjusts the talent echelon structure of the middle andsenior reserve cadre pool, the Class A reserve successor pool, the Class A reserve growth pool, the Class B reservesupervisor pool, and the outstanding college student pool through the selection of young reserve cadres and theregular review and evaluation of reserve talents. At the same time, the reserve talent echelon readiness evaluationmodel is constructed, which evaluates the values, performance results, career experience, performance ability ofthe target position, leadership, training and performance, effectively measures their reserve and configures atraining plan in line with their career planning.
2. Accurate training, to improve the training effect. Based on the needs of business development, it has built amulti-level and multi-category talent training system. On the one hand, it improved the training enthusiasm andprofessional ability of the trainees through activities such as project integrating system and industry exchange; onthe other hand, it introduced external training courses and internal course development to effectively promote theprecision training program in view of the common shortcomings of the team and shortcomings of personal ability;According to the professional ability of key positions in the professional level, it built a learning map and definedthe map of growing professional routes; At the same time, it established the training organization guaranteesystem, and built the company's classified and graded talent training system. Through career planning analysis,course orientation promotion, node control, project review, training examination and other ways, it guided thevertical (promotion) and horizontal (multi-skilled workers, rotation) all-round development effectively, andachieved the training effect and talent promotion gradually.
3. Enrich the company's internal knowledge asset management system, redefine the company's intellectual assetsstandards and organizational guarantee system. On the one hand, it continued to supplement and update theteaching materials of Meiling's knowledge assets library on technology, management, manufacturing, quality,safety and environmental protection; On the basis of "internal trainer certification system" and "benchmarkingpost knowledge extraction project", optimized the professional series of live courses, internalized the company'sstandard talent knowledge base and carried on the inheritance and influence; On the other hand, Plan and carry outthe learning map project, through the design of the learning map of the process, structure, finance and other sequences,closely link the qualifications of specific positions with the learning map, pull through the organic combination of talent
development and learning path, and promote the Company's various sequences to cultivate professionals scientifically,systematically and efficiently; Focus on the sequence of key positions to build a phased learning map micro-courseresource library to help the professional construction of talent echelon.
(iv) Labor outsourcing
□ Applicable √ Not applicable
X. Profit distribution plan and capitalizing of common reserves plan(i) Formulation, Implementation and Adjustment of Profit Distribution Policy Especially Cash Dividendpolicy during the Reporting Period
√ Applicable □ Not applicable
During the reporting period, the company has strictly executed the profit distribution policy in accordance withthe "Articles of Association", the formulation and implementation of the company's cash dividend policy are inline with the provisions of "Articles of Association" and the requirements of the resolutions of shareholders'meeting, the dividends standards and proportion have been definite and clear, relevant decision-makingprocedures and mechanisms have been complete, the responsibilities of independent directors have been clear andhave played its due role, minority shareholders have had the opportunities to fully express their views andaspirations, and the legitimate interests of minority shareholders have been maintained.
During the reporting period, in order to enhance and improve the shareholder return mechanism, increase thetransparency and operability of profit distribution policy and decision-making, and effectively protect the legitimaterights and interests of public investors, the Company formulated the "Shareholder Return Plan for the Company in theNext Three Years (2024-2026)" in accordance with relevant regulations and comprehensive consideration of factorssuch as the Company's operating and financial status. Meanwhile, the Company has implemented the 2023 annual profitdistribution plan, that is, based on the total share capital of 1,029,923,715 shares on date of record at the time ofimplementing the 2023 annual equity distribution plan (including 881,733,881 shares of A shares and 148,189,834shares of B shares), the company distributed a cash dividend of RMB 3 (including tax) for every 10 shares to allshareholders, with a total cash dividend of RMB 308,977,114.5.and the dividend ratio accounts for 41.70% of thenet profit attributable to shareholders of the listed company in 2023.
| Special explanation on cash dividend policy | |
| Whether it meets the requirements of the Articles of Association or the resolution of the general meeting of shareholders: | Yes |
| Whether the dividend standard and proportion are explicit and clear: | Yes |
| Whether the relevant decision-making procedures and mechanisms are complete: | Yes |
| Whether the independent directors have performed their duties and played their due role: | Yes |
| If the Company does not distribute cash dividends, specific reasons, as well as the measures to be taken to enhance investor returns should be disclosed: | Not applicable |
| Whether the minority shareholders have the opportunity to fully express their opinions and demands, and whether their legitimate rights and interests have been fully protected: | Yes |
| Whether the cash dividend policy is adjusted or changed, and whether the conditions and procedures are compliant and transparent: | Yes |
(ii) The Company is profitable during the reporting period and the parent company has positive profitavailable for distribution to shareholders without cash dividend distribution plan proposed
□ Applicable √ Not applicable
(iii) Profit distribution plan and capitalizing of common reserves plan for the Period
√ Applicable □ Not applicable
| Bonus shares for every 10-share (Share) | 0 |
| Dividends for every 10-share (RMB) (Tax included) | 3.3 |
| Shares added for every 10-share base (Share) | 0 |
| Equity base of distribution plan (Share) | 1,029,923,715 |
| Total cash dividend (RMB) (Tax included) | 339,874,825.95 |
| Cash dividend for other ways (i.e. repurchased) (RMB) | 0 |
| Total cash dividend (including other way) (RMB) | 339,874,825.95 |
| Profits available for distribution (RMB) | 1,213,740,009.40 |
| Ratio of cash dividend (including other way) in total profit distribution | 100% |
| Cash dividend | |
| Taking the total share capital of 1,029,923,715shares on the equity registration date of the company’s on December 31, 2024 as the base, distribute cash dividends of 3.3yuan (tax included) for every 10 shares to all shareholders, not giving bonus shares, and not converting capital reserve in to equity. | |
| Detail explanation on profit distribution or capitalization from capital public reserve | |
| According to the audit by Pan-China Certified Public Accountants LLP, in 2024, the net profit realized in individual financial statements of the parent company was RMB 254,008,762.00. As of December 31, 2024, the cumulative undistributed profit in individual financial statements of the parent company was RMB 1,213,740,009.40. In addition, in the consolidated financial statements of the company for the year 2024, the net profit attributable to the owners of the parent company was 699,270,051.82 yuan. As of December 31, 2024, the cumulative undistributed profit in the consolidated financial statements was 1,803,207,185.06 yuan. According to relevant regulations, the distribution of company profits should be based on the profits available for distribution by the parent company, and follow the principle of distributing the lower of the cumulative undistributed profits in the consolidated financial statements and the parent company's financial statements. Therefore, the distributable profit for 2024 is the accumulated undistributed profit of RMB 1,213,740,009.40 in individual financial statements of the parent company. According to relevant regulations and the Company's Articles of Association, taking into account the interests of shareholders and the long-term development needs of the company, it is proposed that the company distribute a cash dividend of 3.3 yuan (including tax) for every 10 shares to all shareholders based on the total share capital of 1,029,923,715 shares as of December 31, 2024, without bonus shares or conversion of reserve funds into share capital. It is expected to distribute a cash dividend of 339,874,825.95 yuan. After this distribution, it is expected that the remaining cumulative undistributed profit of the parent company will be 873,865,183.45 yuan, and the remaining undistributed profit will be carried forward for distribution in future years.. | |
XI. Implementation of the Company’s stock incentive plan, employee stock ownership plan or otheremployee incentives
□ Applicable √ Not applicable
The Company has no equity incentive plan, employee stock ownership plans or other employee incentives.XII. Construction and implementation of internal control system during the reporting period(i) Construction and implementation of internal controlIn accordance with the Basic Norms for Enterprise Internal Control and its supporting guidelines, and theInformation Disclosure Compilation Rules for Companies Publicly Issuing Securities No. 21 - General Provisionson Annual Internal Control Evaluation Reports jointly issued by the China Securities Regulatory Commission andthe Ministry of Finance and other relevant regulations, and combined with the Company's internal control systemand internal control evaluation methods, the company organized its internal control work, effectively implementedinternal control, and continuously improved and optimized the company's internal control system so as to adapt tothe needs and changes of the internal and external environment.The company's 2024 Annual Internal Control Self-Assessment Report fully, truly and accurately reflected theactual situation of the company's internal control. The units, businesses and matters included in the assessmentscope, as well as high-risk areas, covered the main aspects of the company's operation and management, and thecompany maintained effective internal controls in high-risk areas and in all material aspects. During the reportingperiod, the company had no major defects and significant defects in internal control.
(ii) Details of major defects in IC appraisal report that found in reporting period
□Yes √ No
XIII. Management and controls on the subsidiary during reporting periodDuring the reporting period, as a shareholder or controller, the company strictly adhered to relevant national lawsand regulations, as well as the provisions and requirements of the company's articles of association regarding thestandardized operation and improvement of corporate governance structure, and exercised supervision andmanagement over major issues of the subsidiary. The company also had the right to legally enjoy investmentreturns and make decisions on major issues for the investing enterprise.The company has established a standardized and detailed decentralization manual, set clear approval authoritiesand processes, and achieved scientific, reasonable, and efficient management of its subsidiaries. At the same time,according to the relevant internal control system of the company, manage and supervise the disclosure ofinformation, standardized operation, guarantee business, personnel, production and operation of subsidiarycompanies.During the reporting period, the company did not have any major decisions of its subsidiaries that did not complywith company regulations or major issues that were not reported in a timely manner. The subsidiaries also did notfind any significant deficiencies in their internal controls.During the reporting period, the company integrated by purchasing a new subsidiary as follows:
| Name of company | Integration plan | Integration progress | Problems encountered in integration | Actions taken | Resolve progress | Follow-up resolution plan |
| Hefei Changhong Industrial Co., Ltd | The company and its subsidiary Hefei Meiling IoT Technology Co., Ltd. purchased 99% equity of Hefei Industry held by the controlling shareholder Sichuan Changhong and 1% equity of Hefei Industry held by Sichuan Changhong Innovation Investment Co., Ltd., a subsidiary of Sichuan Changhong, with their own funds. This transaction is in line with the company's strategic development needs, meeting the expansion of the company's mid to high end refrigerators, the expansion of its own logistics warehouse, and the future layout of the integrated home appliance industry, solving the problems of industrial development and resource scarcity. | On November 20, 2024, Hefei Industrial completed the industrial and commercial registration procedures for shareholder changes, and became a wholly-owned subsidiary within the scope of the company's merger statement- | NO | Not Applicable | Not Applicable | Not Applicable |
XIV. Internal control self-assessment report or internal control audit report(i) Appraisal Report of Internal Control
| Date of evaluation report of internal control disclosed (Full-text) | April 3,2025 |
| Index of evaluation report of internal control disclosed (Full-text) | Juchao Website（www.cninfo.com.cn） |
| The ratio of the total assets of units included in the scope of evaluation accounting for the total assets on the company's consolidated financial statements | 99.91% |
| The ratio of the operating income of units included in the scope of evaluation accounting for the operating income on the company's consolidated financial statements | 100.00% |
| Defects Evaluation Standards | ||
| Category | Financial Reports | Non-financial Reports |
| Qualitative criteria | 1. Material defect: severally or jointly with other defects, will lead to material wrong reporting in financial reports being not able to prevented or found or rectified in a timely manner. Occurrence of the followings will be deemed as material defect: 1. inefficiency of environment control; 2. fraud of directors, supervisors and senior management; 3. The external auditor finds material wrong reporting in current financial statement, while the Company has not found such reporting during its operation; 4. The material defect identified and reported to the management fails to be rectified in a reasonable time period; 5. The audit committee and audit department of the Company exercise invalid supervision upon internal control; 6. Other defects which may affect financial statement users to make correct judgment. 2. Major defect: severally or jointly with other defects, will lead to wrong reporting in financial reports being not able to prevented or found or rectified in a timely manner which still needs attention from the management though it doesn’t reach or exceed material defect as described above. Occurrence of the followings will be deemed as major defect: (1) Financial losses caused by guaranteeing and investing in securities and financial derivatives transactions and disposing property right and stock right without authorization; (2) The company's financial staff or other relevant business personnel have unclear powers and responsibilities or job chaos, or are suspected of being involved in economic or job-related crimes and have been transferred to the judiciary; (3) Punishment or severely negative impacts on the company's image due to the bias implementation of the policy or accounting errors, etc.; (4) Financial losses caused by destroying, concealing, or altering the important original evidences at will, such as invoices and checks, etc. (5) Cash income is not entered into the account book, or public funds are deposited in private account or "private coffer" is established by breaking the rules. 3. General defect: other internal control related defects that do not constitute material defects or major defect. | Occurrence of the followings shall be deemed as material defect, otherwise as major defect or general defect subject to the level of influence. 1. breach of national laws, regulations or regulatory documents; 2. procedure for making significant decisions is not scientific; 3. absence of system may lead to invalid system; 4. Material or major defects are not likely to rectify; 5. Large negative effects on the company and disclosed in the form of announcement; 6. Other issues that materially affect the Company. |
| Quantitative standard | 1. Proportion of potential wrong reporting in total operating income: Material defect: wrong reporting ≧0.5%; Major defect: 0.1% ≤ wrong reporting＜0.5%; General defect: wrong reporting＜0.1%. 2. Proportion of potential wrong reporting in total profit: Material defect: wrong reporting ≧10%; Major defect: 5% ≤ wrong reporting＜10%; General defect: wrong reporting＜5%. 3. Proportion of potential wrong reporting in total assets: Material defect: wrong reporting ≧0.5%; Major defect: 0.1% ≤wrong reporting＜0.5%; General defect: wrong reporting＜0.1%. 4. Proportion of potential wrong reporting in total owners’ equity: Material defect: wrong reporting ≧0.5%; Major defect: 0.1% ≤ wrong reporting＜0.5%; General defect: wrong reporting＜0.1%. | 1. Proportion of direct property loss in total operating income: Material defect: wrong reporting ≧0.1%; Major defect: 0.05% ≤ wrong reporting＜0.1%; General defect: wrong reporting＜0.05%. 2. Proportion of direct property loss in total profit: Material defect: wrong reporting ≧10%; Major defect: 5% ≤ wrong reporting＜10%; General defect: wrong reporting＜5%. 3. Proportion of direct property loss in total assets: Material defect: wrong reporting ≧0.2%; Major defect: 0.1% ≤ wrong reporting＜0.2%; General defect: wrong reporting＜0.1%. 4. Proportion of direct property loss in total owners’ equity: Material defect: wrong reporting ≧0.2%; Major defect: 0.1% ≤ wrong reporting＜0.2%; General defect: wrong reporting＜0.1%. |
| Amount of significant defects | 0 | |
| in financial reports | |
| Amount of significant defects in non-financial reports | 0 |
| Amount of important defects in financial reports | 0 |
| Amount of important defects in non-financial reports | 0 |
(ii) Auditing report of internal control
√ Applicable □ Not applicable
| Deliberation section of auditing report of IC | |
| We consider that: in all major aspects, Changhong Meiling Co., Ltd. has efficiency in financial report of internal control dated 31 December 2024 according to Basic Standards of Internal Control for Enterprise and relevant regulations. | |
| Disclosure details of audit report of internal control | Disclosed |
| Disclosure details of audit report of internal control | April 3,2025 |
| Disclosure date of audit report of internal control (full-text) | Juchao Website（www.cninfo.com.cn） |
| Index of audit report of internal control (full-text) | Standard unqualified |
| Opinion type of auditing report of IC | No |
Whether CPA carries out qualified opinion for audit report of internal control or not
□Yes √ No
Whether the opinions are consistent in audit report of internal control carrying out by CPA and the self-evaluationreport of the Board or not
√ Yes □ No
XV. The rectification of self-examination problems in the special actions on governance of listed companies
√ Yes □ No
For details, please refer to Article 15 of Chapter IV "Rectification of Problems Found in Self-inspection of SpecialActions for Governance of Listed Companies" in the Company's Annual Report in 2022. Up to now, the problemsfound in the Company's self-inspection have not been fully rectified as follows:
(i) Subsidiary holding shares of listed companies and the rectification
1. Meiling Group, a wholly-owned subsidiary of the company, held 1,141,053 restricted shares of the Company.The restricted shares held by Meiling Group were the consideration shares received for the share reform on behalfof other non-tradable shareholders in the company's reform plan for non-tradable shares. In March 2016,according to the approval of the State-owned Assets Supervision and Administration Commission of the StateCouncil, the 49,477,513 state-owned shares (including the already held 47,823,401 shares and the unrecoveredrelevant rights of the consideration of 1,654,112 shares received for the share reform on behalf of othernon-tradable shareholders in the company's reform plan for non-tradable shares) of the Company held by HefeiXingtai Holdings Group Co., Ltd., the company's original shareholder, should be transferred to IndustryInvestment Group free of charge. Therefore, the restricted shares of the Company held by Meiling Group shouldbe transferred to Industry Investment Group free of charge.
2. According to the approval of the State-owned Assets Supervision and Administration Commission of the StateCouncil and the regulations of relevant departments, Meiling Group should transfer the shares paid on behalf ofothers and related rights held by it to Industry Investment Group at one time free of charge after recovering all the1,654,112 shares of consideration for the share reform. At present, Meiling Group has only recovered 1,141,053shares, and the holders of the remaining consideration shares for the share reform have been unable to get in touchfor many times and for many years, there is great uncertainty about the time when all the shares will be recovered.However, the company still actively promotes the recovery of the shares advanced by Meiling Group, and handlesthe relevant procedures for free transfer as soon as possible after all the consideration shares for the share reformare recovered. Prior to this, the company's restricted shares held by Meiling Group would not enjoy any rights asshareholders during the holding period, including voting rights, dividend rights, etc.
Section V Environmental and Social Responsibility
I. Major environmental
(1)The listed Company and its subsidiary whether belongs to the key sewage units released fromenvironmental protection department
□Yes √No
The company and its subsidiaries do not belong to the key polluters announced by the environmental protectiondepartment.Administrative penalties for environmental issues during the reporting period
| Name | Cause | Violation of the situation | Result | Impact on the production and operation of listed companies | The company's rectification measures |
| Not applicable | Not applicable | Not applicable | Not applicable | Not applicable | Not applicable |
（2）.Refer to other environmental information disclosed by key pollutant discharge unitsNot applicable。
（3）.Measures taken to reduce carbon emissions and their effectiveness during the reporting period
√Applicable □ Not applicable
The Company actively responds to the national "dual carbon" strategy, adheres to the concept of green andlow-carbon development, and takes dual carbon control as one of the core strategies of enterprise development.The Company has established a dual carbon management committee, established a complete carbon emissioncontrol system, and systematically promoted the Company's overall carbon control work. During the reportingperiod, the Company completed the carbon emission mapping, and successfully completed the 2024 carbonreduction target through measures such as energy conservation and efficiency upgrading, energy systemoptimization, etc. In terms of energy conservation and efficiency improvement, the application of high-efficiencyand energy-saving equipment, the environmental protection technology and the lean production efficiencyimprovement projects have been implemented, which have effectively reduced energy consumption and carbondioxide emissions. The Company also optimizes the energy structure, expands photovoltaic power generationprojects, and increases the proportion of purchased green electricity, which reaches 20% in Hefei area in 2024.Meanwhile, the Company is engaged in the management of green supply chain, promoting suppliers and partnersto jointly reduce carbon emissions and reduce carbon emissions in the entire supply chain.
（4）.Reasons for not disclosing other environmental information
Neither the Company nor its subsidiaries belong to the key pollutant discharge units announced by theenvironmental protection department.The Company advocates the development concept of green environmentalprotection, strictly abides by environmental protection laws and regulations such as the Environmental ProtectionLaw of People's Republic of China, the Law of the People's Republic of China on the Prevention and Control of
Water Pollution and the Law of the People's Republic of China on the Prevention and Control of AtmosphericPollution, promotes green production, enhances energy conservation and emission reduction, and earnestly fulfillsits environmental protection responsibilities.II. Social responsibility
The Company continues to promote win-win development with its stakeholders, earnestly fulfills its socialresponsibilities, pays close attention to the voices of all stakeholders, and actively gives back and improves, and isdetermined to become an enterprise that is respected by the society and loved by its employees. While achievingsound development, it pays attention to protecting the interests of its shareholders, employees, suppliers, customersand consumers, and actively engages in public welfare undertakings, thus promoting the harmonious developmentof the Company and the whole society.
1. Protection of the rights and interests of shareholders and creditors
The company strictly follows the provisions and requirements formulated by the Articles of Association andthe Rules of Procedure for the General Meeting of Shareholders, regulates the convening, holding and votingprocedures of the general meeting of shareholders, equally treats all shareholders, especially small and mediumshareholders equally, and ensures that all shareholders enjoy equal status and fully exercise their own rights.Under the premise of strictly implementing the Administrative Measures for Information Disclosure of ListedCompanies, the company actively communicates and exchanges information with investors on the company'soperations and management, financial status, etc. through annual performance briefings, Anhui service week forinvestors by SZSE, investor telephone hotline, e-mails, and the investor relations interactive platform of theShenzhen Stock Exchange, and discloses information to all investors in a truthful, accurate, complete, concise andclear, and easy-to-understand manner; further, the company attaches great importance to the shareholder returnmechanism, According to the Return Plan for Shareholders of Changhong Meiling Co., Ltd. for the Next ThreeYears (2024 -2026), It guides investors to establish the concept of long-term investment and rational investment, andmaintains the continuity and stability of the profit distribution policy. During the reporting period, combined with itsown operating conditions and other factors, the Company implemented the 2023 profit distribution plan and madecash dividends, accounting for 41.70% of the net profit attributable to shareholders of listed companies in 2023,offered shareholders a reasonable return on investment.
Meanwhile, during the reporting period, the Company held 4 general meetings of shareholders, andimplemented a combination of on-site voting and online voting, so that the majority of investors could fullyparticipate and ensure that shareholders have the right to know, participate and vote on the Company's majorissues. When the general meeting of shareholders deliberated on major matters affecting the interests of small andmedium-sized investors, the votes of small and medium-sized investors were counted separately and publiclydisclosed in the resolutions of the general meeting of shareholders in a timely manner, so as to fully protect therights and interests of small and medium-sized investors.
In addition, in order to establish a variety of shareholder return mechanisms and thank investors for theirlong-term concern and support for the Company, during the reporting period, the Company held the "Meiling
Shareholder Thanksgiving Festival" to give back to all shareholders with sincerity.
2. Protection of the rights and interests of employees
In accordance with relevant laws, regulations and policies, and in light of its own actual situation, thecompany has established a relatively complete employment management system, including labor contract system,salary and performance appraisal system, welfare management system, training management system, employeevacation management system, etc..The company attaches importance to the vital interests of employees, protectsthe legitimate rights and interests of employees to the maximum extent, establishes harmonious labor relations, andstrives to form a good mechanism for the company and employees to create and share together. At the same time, thecompany creates a people-oriented cultural atmosphere by providing various holidays, allowances, condolences andorganizing diversified employee activities, benchmarking personnel selection, carnivals, etc., and continuouslyimproves employee satisfaction.
3. Protection of the rights and interests of suppliers, customers and consumers
The Company has built a sound supplier management system, established the "Supplier EvaluationManagement Specification", strictly standardized the supplier access and evaluation system, and regularly carriedout audits and evaluations to continuously improve supplier capabilities and qualifications. The Company attachesgreat importance to improving the ability of suppliers, and is committed to collaborative development withsuppliers. In order to help suppliers improve quality control and sustainable development related awareness,during the reporting period, the Company organized supplier training activities from time to time. Meanwhile, theCompany strictly controls every aspect of the procurement business, cultivates core and strategic suppliers, andestablishes a high-end supply chain for parts suppliers of high-end products, forming a synergistic, cooperativeand win-win situation between the Company and suppliers.
The Company has a perfect product development process, advanced R&D system, and constantly developsproducts with leading technology. The Company attaches great importance to product quality, has strong qualitycontrol ability, reliable product performance and a refined quality management system, and has passed themanagement system certifications such as ISO9001, ISO14001 and ISO45001. The Company's testing center hasCNAS accreditation qualification, complete test items and strong testing ability, which meets the requirements ofstrict and high-level testing of products. At the same time, it has built one of the few RoHS and intelligent IoTlaboratories in the industry. The Company adheres to the user-centered principle and attaches importance to userreputation. In the domestic market, it increases its attention and support in terminal construction, user experienceand product training to increase the sales of products; In the export market, it fully recognizes the requirements oflocal laws and regulations, strictly certifies products, and fully verifies the reliability and environmental adaptabilityof products to ensure the reliability of products in the target market. Its export products have covered more than 100countries or regions. According to different types of customers, it implements classification and systemmanagement through the information system, and timely feeds back the demands put forward by customers,continuously improves quality services and enhances brand image; It also tracks the market performance bycustomer satisfaction and user net recommendation value.
For the protection of consumers' rights and interests, the company has a relatively advanced closed-loopmanagement system for user service. In order to meet users' service needs, it gradually improves the functionconstruction of official channel service platforms such as 4008 service hotline, brand official website, WeChatofficial account and Zhihuijia APP, attaches importance to and strengthens the user interaction and experience ofsocial platforms such as Tik Tok, Xiaohongshu, Weibo, Bilibili and Zhihu, and understands and handles users' needsand questions in time. In view of user demand processing, it promotes the process visualization management anduser evaluation system management of work order processing timeline. In addition, the company pays attention toimproving consumers' product guarantee service ability, and has created Meiling's exclusive characteristicguarantee service measures, and upgraded and launched the services such as unconditional return within 180 daysfor Meiling M fresh refrigerator because of dissatisfaction in preservation, and unconditional return within 180 daysfor Meiling clean refrigerator because of dissatisfaction in disinfection and sterilization, so as to effectively meetusers' needs and enhance consumer satisfaction.
4. Social welfare
Over the years, the company has been actively participating in social welfare undertakings and various socialwelfare activities. The Company actively carries out actions such as helping employees with serious illness ordifficulties, advocating voluntary donations from employees, paying attention to occupational disease preventionand control, and organizing safety education and training. During the reporting period, the Company took theinitiative to assume social responsibilities, rushed to the flood-stricken areas in Xixian County, Huangshan, andprovided free testing and cleaning services for home appliances. The Party Committee of the Company activelyparticipated in the third party building project of Micro-philanthropy venture capital in the Jinxiu Community SocialOrganization Incubation Park in Hefei Economic Development Zone. During the reporting period, it organized sixactivities, including popular science popularization experiment, safety education and psychological salon, toenhance the happiness of the community and family. The Company also helped many primary and secondaryschools in Hefei to carry out 26 study tours, gave full play to the advantages of national intelligent manufacturingdemonstration enterprises, set up labor practice classes on the production line, received nearly 3,000 primary andsecondary school students, and sowed the "made in China" seeds in the hearts of every teenager through interestingexperiment classes, creative labor classes and brand history classes.
In order to actively respond to the national poverty alleviation policy and focus on improving the schoolinfrastructure in poor areas, Changhong Air Conditioning, a subsidiary of the Company, participated in the"ChildhoodHarbor" project promoted and implemented by China Guanghua Science and Technology Foundation,and donated 50 air conditioners to Ningnan Middle School in Phisha Town, Ningku County, Liangshan Prefecture,Sichuan Province, which solved the problem of high temperature, wet and cold learning and living conditions oflocal middle school students. In order to promote the high-quality development of public health services, theCompany's subsidiary, Zhongke Meiling, donated an automated vaccination workstation to the Linhu CommunityHealth Service Center of Hefei Economic Development Zone through the Hefei Red Cross Society, realizing theintegration of storage and vaccination, automatic vaccine issuance with zero errors, traceability of vaccinationinformation, and more efficient and accurate vaccine management. In addition, the Company's subsidiary,
Zhongke Meiling, supports the development of university education, and within the scope of the amountdeliberated and approved by its board of directors and shareholders' general meeting, it has awarded a total of800,000 yuan of special scholarships in 2024 to 6 universities including Tsinghua University, Zhejiang University,and Anhui Medical University, and has awarded a total of 1.7 million yuan of special scholarships to colleges anduniversities so far.III. Consolidate and expand the achievements of poverty alleviation and rural revitalizationIn 2024, the Company unswervingly and fully implements the decisions and arrangements made by the CPCCentral Committee and the State Council for rural revitalization, actively responds to the call, promotes ruralrevitalization, and contributes to rural development. In order to actively respond to the rural revitalization strategyand help fruit farmers expand the sales channels of agricultural products, increase income and improve their lives,the Company purchased high-quality kiwifruit from rural areas to help and distributes benefits to employees.
VI. Important EventsI. Implementation of commitment(i) Commitments that the actual controller, shareholders, related party, the buyer and the company havefulfilled during the reporting period and have not yet fulfilled by the end of reporting period
√ Applicable □ Not applicable
| Commitment | Commitment party | Type/content | Date | Term | Implementation | |
| Commitments made in acquisition report or equity change report | Sichuan Changhong Electric Co., Ltd.(hereinafter, the “Sichuan Changhong”) | About committed and promised in order to prevent horizontal competition in the Acquisition Report of Hefei Meiling Co., Ltd. | 1. The acquirer shall not engage in refrigerator business or activity which competes or will compete with business of Meiling Electrical Appliances, or that which has interest conflict with Meiling Electrical Appliances. | 2007-6-12 | Valid for long term | Strictly implemented |
| 2. The acquirer promises to apply shareholders’ right on a legal and reasonable manner and shall not take any action to limit or affect the normal operation of Meiling Electric. | Valid for long term | Strictly implemented | ||||
| 3. For any opportunity to engage in competing business, the acquirer will advise Meiling Electric in written for engaging such business or not. If Meiling Electrical Appliances gives no clear written reply as to whether engaging the competing business or not within 20 days after receipt of the aforesaid letter, it shall be deemed that it will not engage in such business. The acquirer will only engage in non-competing business provided that Meiling Electric confirms not to or is deemed to not engage in such non-competing business. | Valid for long term | Strictly implemented | ||||
| Commitment made during the non-public offer of 2010 | Sichuan Changhong | Commitment regarding to reducing and preventing competition with Meiling Electric | 1. It will not engage in such business or activity that competes with or has interest conflict with that of Meiling Electric except for the action taken for sake of Meiling Electric as required by Meiling Electrical Appliances. | 2010-6-24 | Valid for long term | Strictly implemented |
| 2. The Company promises to apply shareholders’ right on a legal and reasonable manner and shall not take any action to limit or affect the normal operation of Meiling Electric | ||||||
| 3. In case that Meiling Electric expects, on the basis of its existing business, to expand its operation scope into the business which the Company has already operated, the Company agrees to grant priority acquisition right to Meiling Electric regarding such business if the same conditions are met, provided that the Company is still the controlling shareholder or actual controller of Meiling Electric | ||||||
| Commitment regarding to reducing and standardizing related transaction with Meiling Electric | 1. Measures will be adopted to prevent continued related transaction with Meiling Electric: as to the related transaction that can not be prevented, it will sign related transaction agreement with Meiling Electric under the market principles of “equally paid and mutual benefit”, and fairly determined the transaction price according to the market prevailing standards. | June 24,2010 | Valid for long term | Strictly implemented | ||
| 2. Perform the necessary obligations to make related directors and related shareholder abstain from voting according to relevant regulation, and observe legal procedure for approving related transaction and information disclosure obligations. | ||||||
| 3. Promise not to hurt legal interests of Meiling Electric and other shareholders through related transaction. | ||||||
| Commit to authorized Changhong Air-conditioner and Zhongshan Changhong use “Changhong” trademark and relevant patents for free. | November 6,2010 | Valid for long term | Strictly implemented | |||
| The Company | 1. Commit to disclose periodic reports on a truthful, accurate, complete, fair and prompt manner, to disclose all the information that have important influences over investors, to accept supervision under the CSRC and Shenzhen Stock Exchange. | January 7,2011 | Valid for long term | Strictly implemented | ||
| 2. Commit to make public clarification in respect of such information that is released from any public media and may result in misleading influences on stock price once the Company is aware of such information. | ||||||
| 3. The directors, supervisors, senior management and core technicians of the Company will accept opinions and criticism from the social public, and they will not trade the Company’s securities, directly or indirectly, with any inside information and other illegal methods. The Company promises that the documents submitted to Shenzhen Stock Exchange exist no false statement or material omission, and no relevant information will be disclosed during the application for listing without prior content from Shenzhen Stock Exchange. | ||||||
| Commitment made in transfer of air conditioning assets property | Sichuan Changhong | 1. Since the property transfer didn’t involve the buildings and land currently used by Changhong Air-conditioner, Sichuan Changhong commits, upon the completion of equity transfer, to continue to lease such assets to Changhong Air-conditioner at market price. | December 10,2009 | Valid for long term | Strictly implemented | |
| 2. After completion of this property transfer, Sichuan Changhong commits to manage to prevent new related transaction with Meiling Electric. For those which can not be prevented, Sichuan Changhong commits to determine the transaction price based on market accepted methods, so as to ensure fairness of related transaction and protection of the interest of Meiling Electric | Valid for long term | Strictly implemented | ||||
| 3. Sichuan Changhong commits that it will not engage in air conditioning and refrigerator business or activity which competes or will compete with business of Meiling Electric, or that which has interest conflict with Meiling Electric | ||||||
| Commitments of not to reducing the shares | Sichuan Changhong Electric Co., Ltd.and persons acting in concert CHANGHONG (HK) TRADING LIMITED | 1. Based on market conditions and as allowed by laws and rules, multiple measures were adopted adequately to increase shareholding of Meiling Electric, so as to demonstrate its firm confidence on the PRC economy and Meiling Electric with its actual actions, maintain sound development of capital market and promote recovery of healthy market | July 9,2015 | Valid for long term | Strictly implemented | |
| 2. Continued to support operation and development of listed company as always and promoted the achievement of Meiling Electric. It is committed to bringing steady and real return to investors. | ||||||
| Commitment made during the non-public offer in 2016 | The Company | 1. Promise to truly, accurately, completely, fairly and timely publish periodic reports, disclose all information that has significant impacts on the investors, and accept the supervision and management of China Securities Regulatory Commission and the Shenzhen Stock Exchange. | December 12,2016 | Valid for long term | Strictly implemented | |
| Make commitments that the Company will publicly clarify in time after knowing any information on any public communications media that may cause misleading influence on the stock price | ||||||
| 3. The Company’s directors, supervisors and senior executives will listen carefully to the opinions and criticisms of the public and never use any acquired inside information and other improper means to directly or | ||||||
| indirectly engage in the trading activities of the Company's stock. | |||
| Perform the commitment promptly or not | √ Yes □ No | ||
| If the commitment is overdue and has not been fulfilled, the specific reasons for incomplete performance and the work plan for next step shall be explained in detail | Not applicable | ||
Note: The fulfilled commitments in the form will not be disclosed in the next periodic report.
(ii) Concerning assets or project of the Company, which has profit forecast, and reporting period still inforecasting period, explain reasons of reaching the original profit forecast
□ Applicable √ Not applicable
II. Non-operational fund occupation from controlling shareholders and its related party
□ Applicable √ Not applicable
NoneIII. External guarantee out of the regulations
□ Applicable √ Not applicable
No external guarantee out of the regulations occurred in the period.IV. Statement on the latest “modified audit report” by BOD
□ Applicable √ Not applicable
V. Explanation from Board of Directors, Supervisory Committee and Independent Directors (if applicable)for “Qualified Opinion” that issued by CPA
□ Applicable √ Not applicable
VI. Explanation of the changes in accounting polices, accounting estimates or correction of significantaccounting errors compared with the financial report of the previous year
√ Applicable □ Not applicable
Found more details in 38. Change of major accounting policy and estimation under III. Major accounting policyand estimation carried in the Section X. Financial ReportVII. Compare with last year’s financial report; explain changes in consolidation statement’s scope
√ Applicable □ Not applicable
In the reporting period, the consolidated financial statements of the Company cover 24 subsidiaries, includingSichuan Changhong Air-conditioner Co., Ltd, Zhongshan Changhong Electric Co., Ltd. And Zhongke MeilingCryogenic Technology Co., Ltd. etc. Compared with the previous year, during the reporting period two enterpriseis included in the consolidate scope, During the reporting period, two subsidiaries included in the consolidatedstatement were cancelled: Hefei Meiling Marketing Co., Ltd. and Wuhan Meizhirong Appliance Marketing Co.,Ltd.More details can be seen in the report “VII. Changes in the scope of the merger” and “VIII. Equity in other entities”of “Section X Financial Report”VIII. Appointment and non-reappointment (dismissal) of CPA(i)CPAs currently engaged
| Name of domestic accounting firm | Pan-China Certified Public Accountants LLP |
| Remuneration for domestic accounting firm ( RMB 10,000) | 175 |
| Continuous life of auditing service for domestic accounting firm | 1 year |
| Name of domestic CPA | Li Yuanliang, Peng Yahui |
| Continuous life of auditing service for domestic CPA | Li Yuanliang( 1 year), Peng Yahui (1 year) |
| Name of foreign accounting firm (if applicable) | N/A |
| Remuneration for foreign accounting firm (RMB 10,000) (if applicable) | N/A |
| Continuous life of auditing service for foreign accounting firm (if applicable) | N/A |
| Name of foreign CPA (if applicable) | N/A |
| Continuous life of auditing service for foreign CPA (if applicable) | - |
(ii)Has the CPAs been changed in the current period
√Yes □ No
Whether to hire a new accounting firm during the audit period
□ Yes √ No
Has the approval process been followed for changing accounting firms
√ Yes □ No
Detailed explanation of the situation of changing the appointment or accounting firm
Given that Xinyong Zhonghe Certified Public Accountants has provided auditing services for the companyfor consecutive years, in accordance with the relevant requirements of the "Management Measures for theSelection and Engagement of Accounting Firms by State-owned Enterprises and Listed Companies" issued by theMinistry of Finance, the State-owned Assets Supervision and Administration Commission of the State Council,and the China Securities Regulatory Commission, in order to maintain the independence, objectivity, and fairnessof the company's auditing work, after the company's public bidding process, Tianjian has been appointed as theauditing institution for the company's 2024 financial reports and internal control.A detailed explanation of the change of employment and accounting firm
√Applicable □Not applicable
In reporting period, Pan-China Certified Public Accountants LLP was appointed as audit institute of internalcontrol for the Company, auditing charge for internal control amounting as 300,000 yuan.IX. Particular about delisting after annual report disclosed
□ Applicable √ Not applicable
X. Bankruptcy reorganization
□ Applicable √ Not applicable
XI. Material lawsuits and arbitration of the Company
√Applicable □Not applicable
| Basic situation of litigation(arbitration) | Amount involved (Ten thousand yuan) | Whether to form estimated liabilities | Litigation(arbitration)progress | Litigation(arbitration)trial results and impact | Implementation of litigation(arbitration)judgments | Disclosure date | Disclosure index |
| Zhiyijia, an affiliated enterprise of the company, signed a sales contract with the defendant, Tianjin Pengsheng Logistics Co., Ltd. (hereinafter referred to as "Tianjin Pengsheng"). After the contract was signed, Zhiyijia, the plaintiff, supplied the goods to Tianjin Pengsheng, the defendant as agreed, but Tianjin Pengsheng, the defendant, failed to fulfill the payment obligation to Zhiyijia as agreed. As of November 30, 2022, according to statistics, Tianjin Pengsheng, the defendant, still owed Zhiyijia a payment of RMB | 9,617.43 | No | The judgment of the first instance has come into effect. | The court ordered the defendant Tianjin Pengsheng to immediately pay the plaintiff RMB 96,174,308.42 and the corresponding liquidated damages for overdue | Under execution | December 24,2022, October 20,2023 | Juchao Website (www.cninfo.com.cn)(2022-101and 2023-057） |
| 96,174,308.42. Based on this, Zhiyijia, the plaintiff brought a lawsuit against Tianjin Pengsheng, the defendant to the People's Court of Mianyang High-tech Industrial Development Zone, and requested the court to order Tianjin Pengsheng to immediately pay the plaintiff RMB 96,174,308.42 and the corresponding liquidated damages for overdue payment, and bear the related litigation costs and property preservation guarantee fees. | payment, and bear the related litigation costs and property preservation guarantee fees. | ||||||
| Meiling Group, a subsidiary of the Company, signed a sales contract with Gome Electrical Appliances Co., Ltd. (hereinafter referred to as "Gome"). After the contract was signed, Meiling Group, the plaintiff, fulfilled the supply obligation according to the contract, while Gome and its affiliated companies, the defendant, failed to fulfill the payment obligation to Meiling Group according to the contract. According to statistics, the defendant Gome and its affiliated companies owe Meiling Group RMB 9,841,267.21 for purchase payment and RMB 1,018,820.55 for liquidated damages for overdue payment, totaling RMB 10,860,087.76. Based on this, the plaintiff Meiling Group filed a lawsuit against the defendant Gome and its affiliated companies in the People's Court of Hefei High-tech Industry Development Zone. It requested the court to order the defendant Gome to immediately pay the plaintiff Meiling Group the purchase payment and the liquidated damages for overdue payment, totaling RMB 10,860,087.76. | 1,086.01 | No | Twenty-two cases have been decided in the first instance,14 cases have come into effect and 8 cases are under appeal. | he court ordered the defendant Gome Electrical Appliances Co., Ltd. to immediately pay the plaintiff Meiling Group RMB 5,483,519.01 and the corresponding liquidated damages for overdue payment, and bear the relevant litigation costs and property preservation guarantee fees. | Some cases have come into effect and are under implementation. | October 20,2023 | Juchao Website (www.cninfo.com.cn)(2023-058） |
| Accumulated amount of other litigation that does not meet the disclosure standard of major litigation | 13,582.72 | Part of it is a note | - | - | - | - | - |
Note: An estimated liability of 1.6527 million yuan will be confirmed in 2024. For specific details, please refer tothe relevant content of "43. Estimated Liabilities" in "V. Annotations to Key Items in Consolidated FinancialStatements" of "Section 10 Financial Report" in this report.Notes: The Company's shareholding in Zhiyijia is 50%, and the products are sold through Zhiyijia's smart tradingplatform. The customers, channels and sales transactions corresponding to the products sold are controlled anddocked by the company itself, and the external transaction object is Zhiyijia, and related transactions are formedbetween the Company and Zhiyijia. In terms of payment settlement, the Company and Zhiyijia follow theprinciple of "external customer account period is Zhiyijia's account period to the Company, and external customerpayment is Zhiyijia's payment to the Company, which is not allowed to be remained or transited at Zhiyijia". Theamounts involved in this case are all accounts receivable and liquidated damages for overdue payment caused bythe Company's sales through the smart trading platform of Zhiyijia, but the subject of the agreement is Zhiyijia,and this lawsuit will be filed by Zhiyijia. The Company and its affiliated enterprise Zhiyijia will claim theirlegitimate rights and interests according to law and actively take relevant measures to safeguard the legitimaterights and interests of the Company, Zhiyijia and the investors.XII. Penalty and rectification
□Applicable√Not applicable
During the reporting period, the Company had no Penalty and rectification.
XIII. Integrity of the company and its controlling shareholders and actual controllers
□Applicable √ Not applicable
During the reporting period, the Company and the controlling shareholders and the actual controllers have hadgood reputation, and there is no large amount due unliquidated debt sentenced by the court.
XIV. Major related party transaction(i) Related party transaction with routine operation concerned
√ Applicable □ Not applicable
| Serial | Related party | Relationship | Type of related transaction | Content of related transaction | Pricing principle | Related transaction price (in 10 thousand Yuan) | Related transaction amount (in 10 thousand Yuan) | Proportion in similar transactions (%) | Trading limit approved (in 10 thousand Yuan) | Whether over the approved limited or Not (Y/N) | Clearing form for related transaction | Available similar market price | Date of disclosure | Index of disclosure |
| 1 | Sichuan Changhong Electric Co., Ltd. | Controlling shareholder | Commodity purchased | Pressure regulator, integrated circuit, transistors, steel plate, plastic parts, etc | Marketing price | 9,529.65 | 9,529.65 | 0.39% | 23,000 | No | Spot exchange, Bank acceptance | - | December 5,2023,December 22,2023,March 30,2024, April 26,2024, August 17, 2024, October 11,2024, October 30,2024. | Juchao Website（www.cninfo.com.cn）No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024,2024-04,,2024-042,2024-044,2024-046,2024-047,2024-049,2024-60. |
| 2 | Sichuan Changhong Electronics Holding Group Co., Ltd. | Controlling shareholder | Commodity purchased | Steel plate and plastic particles, etc | Marketing price | 246,940.12 | 246,940.12 | 10.22% | 293,800 | No | Spot exchange, Bank acceptance | - | December 5,2023,December 22,2023,March 30,2024, April 26,2024, August 17, 2024, October 11,2024, October 30,2024. | Juchao Website（www.cninfo.com.cn）No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024,2024-04,,2024-042,2024-044,2024-046,2024-047,2024-049,2024-60. |
| 3 | Changhong Huayi Compressor Co., Ltd. | Other enterprise control under the same controlling shareholder and | Commodity purchased | Compressor, Energy | Marketing price | 56,726.83 | 56,726.83 | 2.35% | 80,000 | No | Spot exchange, Bank acceptance | - | December 5,2023,December 22,2023,March 30,2024, April 26,2024, August 17, 2024, October 11,2024, October 30,2024. | Juchao Website（www.cninfo.com.cn）No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024,2024-04,,2024-042,2024-044,2024-046,2024-047,2024-049,2024-60. |
| ultimate controller | ||||||||||||||
| 4 | Sichuan Changhong Mold Plastic Tech. Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Commodity purchased | Components, plastic parts and lining accessories etc. | Marketing price | 109,355.07 | 109,355.07 | 4.52% | 130,000 | No | Spot exchange, Bank acceptance | - | December 5,2023,December 22,2023,March 30,2024, April 26,2024, August 17, 2024, October 11,2024, October 30,2024. | Juchao Website（www.cninfo.com.cn）No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024,2024-04,,2024-042,2024-044,2024-046,2024-047,2024-049,2024-60. |
| 5 | Sichuan Changhong Jijia Fine Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Commodity purchased | Base plate assembly, black plate, bracket etc. | Marketing price | 65,751.66 | 65,751.66 | 2.72% | 65,000 | No | Spot exchange, Bank acceptance | - | December 5,2023,December 22,2023,March 30,2024, April 26,2024, August 17, 2024, October 11,2024, October 30,2024. | Juchao Website（www.cninfo.com.cn）No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024,2024-04,,2024-042,2024-044,2024-046,2024-047,2024-049,2024-60. |
| 6 | Sichuan Changhong Package Printing Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate | Commodity purchased | Packing boxes, foam, fixed support block etc. | Marketing price | 14,933.66 | 14,933.66 | 0.62% | 20,000 | No | Spot exchange, Bank acceptance | - | December 5,2023,December 22,2023,March 30,2024, April 26,2024, August 17, 2024, October 11,2024, October 30,2024. | Juchao Website（www.cninfo.com.cn）No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024,2024-04,,2024-042,2024-044,2024-046,2024-047,2024-049,2024-60. |
| controller | ||||||||||||||
| 7 | Sichuan Changhong Precision Electronics Tech. Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Commodity purchased | Printed board machine insertion machine paste assembly | Marketing price | 3,122.63 | 3,122.63 | 0.13% | 4,000 | No | Spot exchange, Bank acceptance | - | December 5,2023,December 22,2023,March 30,2024, April 26,2024, August 17, 2024, October 11,2024, October 30,2024. | Juchao Website（www.cninfo.com.cn）No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024,2024-04,,2024-042,2024-044,2024-046,2024-047,2024-049,2024-60. |
| 8 | Sichuan Changhong International Hotel Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Commodity purchased | Foods | Marketing price | 3.31 | 3.31 | 0.0001% | 5,000 | No | Spot exchange, Bank acceptance | - | December 5,2023,December 22,2023,March 30,2024, April 26,2024, August 17, 2024, October 11,2024, October 30,2024. | Juchao Website（www.cninfo.com.cn）No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024,2024-04,,2024-042,2024-044,2024-046,2024-047,2024-049,2024-60. |
| 9 | Guangdong Changhong Electronics Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Commodity purchased | Foam and carton | Marketing price | 1,080.41 | 1,080.41 | 0.04% | 6,000 | No | Spot exchange, Bank acceptance | - | December 5,2023,December 22,2023,March 30,2024, April 26,2024, August 17, 2024, October 11,2024, October 30,2024. | Juchao Website（www.cninfo.com.cn）No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024,2024-04,,2024-042,2024-044,2024-046,2024-047,2024-049,2024-60. |
| 10 | Sichuan Changhong Intelligence Manufacturing Technology Co., Ltd. | Other enterprise control under the same controllin | Commodity purchased | Outside cover parts | Marketing price | 0.49 | 0.49 | 0.00002% | 5,000 | No | Cash settlement | - | December 5,2023,December 22,2023,March 30,2024, April 26,2024, August 17, 2024, October | Juchao Website（www.cninfo.com.cn）No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024,2024-04,,2024-04 |
| g shareholder and ultimate controller | 11,2024, October 30,2024. | 2,2024-044,2024-046,2024-047,2024-049,2024-60. | ||||||||||||
| 11 | Sichuan Hongwei Technology Co., Ltd | Other enterprise control under the same controlling shareholder and ultimate controller | Commodity purchased | Electric products | Marketing price | 33.49 | 33.49 | 0.0014% | 6,000 | No | Cash settlement | - | December 5,2023,December 22,2023,March 30,2024, April 26,2024, August 17, 2024, October 11,2024, October 30,2024. | Juchao Website（www.cninfo.com.cn）No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024,2024-04,,2024-042,2024-044,2024-046,2024-047,2024-049,2024-60. |
| 12 | Sichuan Changhong New Energy Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Commodity purchased | Batteries | Marketing price | 80.08 | 80.08 | 0.0033% | 5,000 | No | Spot exchange, Bank acceptance | - | December 5,2023,December 22,2023,March 30,2024, April 26,2024, August 17, 2024, October 11,2024, October 30,2024. | Juchao Website（www.cninfo.com.cn）No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024,2024-04,,2024-042,2024-044,2024-046,2024-047,2024-049,2024-60. |
| 13 | Sichuan Zhiyijia Network Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Commodity purchased | Refrigerator, Washing machine , Air conditioner, LCD TV | Marketing price | 604.42 | 604.42 | 0.03% | 6,000 | No | Cash settlement | - | December 5,2023,December 22,2023,March 30,2024, April 26,2024, August 17, 2024, October 11,2024, October 30,2024. | Juchao Website（www.cninfo.com.cn）No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024,2024-04,,2024-042,2024-044,2024-046,2024-047,2024-049,2024-60. |
| 14 | Changhong International Holdings (Hong Kong) Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Commodity purchased | TV, Air conditioner | Marketing price | 1,952.84 | 1,952.84 | 0.08% | 16,000 | No | Cash settlement | - | December 5,2023,December 22,2023,March 30,2024, April 26,2024, August 17, 2024, October 11,2024, October 30,2024. | Juchao Website（www.cninfo.com.cn）No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024,2024-04,,2024-042,2024-044,2024-046,2024-047,2024-049,2024-60. |
| 15 | Sichuan Changhong Device Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Commodity purchased | Printed board | Marketing price | 501.45 | 501.45 | 0.02% | 6,000 | No | Bank acceptance | - | December 5,2023,December 22,2023,March 30,2024, April 26,2024, August 17, 2024, October 11,2024, October 30,2024. | Juchao Website（www.cninfo.com.cn）No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024,2024-04,,2024-042,2024-044,2024-046,2024-047,2024-049,2024-60. |
| 16 | Sichuan Changhong Electronic Products Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Commodity purchased | Remote controls, switching transformers, printed boards, electronic components, etc. | Marketing price | 2,433.07 | 2,433.07 | 0.10% | 5,000 | No | Spot exchange, Bank acceptance | - | December 5,2023,December 22,2023,March 30,2024, April 26,2024, August 17, 2024, October 11,2024, October 30,2024. | Juchao Website（www.cninfo.com.cn）No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024,2024-04,,2024-042,2024-044,2024-046,2024-047,2024-049,2024-60. |
| 17 | Sichuan Jiahong Industrial Co., Ltd | Other enterprise control under the same | Commodity purchased | Foods | Marketing price | 0.99 | 0.99 | 0.00004% | 5,000 | No | Cash settlement | - | December 5,2023,December 22,2023,March 30,2024, April 26,2024, August 17, 2024, October | Juchao Website（www.cninfo.com.cn）No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024,2024-04,,2024-04 |
| controlling shareholder and ultimate controller | 11,2024, October 30,2024. | 2,2024-044,2024-046,2024-047,2024-049,2024-60. | ||||||||||||
| 18 | Sichuan Ailian Science & Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Commodity purchased | Internet access modules, electronic components, etc | Marketing price | 1,230.76 | 1,230.76 | 0.05% | 3,000 | No | Spot exchange, Bank acceptance | - | December 5,2023,December 22,2023,March 30,2024, April 26,2024, August 17, 2024, October 11,2024, October 30,2024. | Juchao Website（www.cninfo.com.cn）No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024,2024-04,,2024-042,2024-044,2024-046,2024-047,2024-049,2024-60. |
| 19 | Sichuan Aichuang Science & Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Commodity purchased | Inverter integrated board | Marketing price | 15,558.82 | 15,558.82 | 0.64% | 30,000 | No | Spot exchange, Bank acceptance | - | December 5,2023,December 22,2023,March 30,2024, April 26,2024, August 17, 2024, October 11,2024, October 30,2024. | Juchao Website（www.cninfo.com.cn）No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024,2024-04,,2024-042,2024-044,2024-046,2024-047,2024-049,2024-60. |
| 20 | Sichuan Hongmofang Network Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate | Accept labor service | Information technology Service | Marketing price | 0.60 | 0.60 | 0.0003% | 7,500 | No | Cash settlement | - | December 5,2023,December 22,2023,March 30,2024, April 26,2024, August 17, 2024, October 11,2024, October 30,2024. | Juchao Website（www.cninfo.com.cn）No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024,2024-04,,2024-042,2024-044,2024-046,2024-047,2024-049,2024-60. |
| controller | ||||||||||||||
| 21 | Sichuan Aoku Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Commodity purchased | Inverter integrated board ，Electronic control components | Marketing price | 2,576.51 | 2,576.51 | 0.11% | 8,000 | No | Spot exchange, Bank acceptance | - | December 5,2023,December 22,2023,March 30,2024, April 26,2024, August 17, 2024, October 11,2024, October 30,2024. | Juchao Website（www.cninfo.com.cn）No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024,2024-04,,2024-042,2024-044,2024-046,2024-047,2024-049,2024-60. |
| 22 | Sichuan Changhong Electronics Holding Group Co., Ltd. | Controlling shareholder and ultimate controller | Accept labor service | Shuttle transportation fee, training fee | Marketing price | 244.74 | 244.74 | 0.12% | 293,800 | No | Cash settlement | - | December 5,2023,December 22,2023,March 30,2024, April 26,2024, August 17, 2024, October 11,2024, October 30,2024. | Juchao Website（www.cninfo.com.cn）No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024,2024-04,,2024-042,2024-044,2024-046,2024-047,2024-049,2024-60. |
| 23 | Sichuan Changhong Electric Co., Ltd. | Controlling shareholder | Accept labor service | Software usage fee, information consultation fee, inspection and certification fee | Marketing price | 2,938.39 | 2,938.39 | 1.39% | 7,500 | No | Cash settlement | - | December 5,2023,December 22,2023,March 30,2024, April 26,2024, August 17, 2024, October 11,2024, October 30,2024. | Juchao Website（www.cninfo.com.cn）No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024,2024-04,,2024-042,2024-044,2024-046,2024-047,2024-049,2024-60. |
| 24 | Sichuan Changhong Minsheng Logistics Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate | Accept labor service | Transportation costs, storage and handling charges, freight and miscellaneous charges etc. | Marketing price | 69,060.46 | 69,060.46 | 32.78% | 75,000 | No | Cash settlement | - | December 5,2023,December 22,2023,March 30,2024, April 26,2024, August 17, 2024, October 11,2024, October 30,2024. | Juchao Website（www.cninfo.com.cn）No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024,2024-04,,2024-042,2024-044,2024-046,2024-047,2024-049,2024-60. |
| controller | ||||||||||||||
| 25 | Sichuan Changhong Mold Plastic Tech. Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Accept labor service | Commission processing fee，Change the mold service | Marketing price | 4,184.02 | 4,184.02 | 1.99% | 10,000 | No | Spot exchange, Bank acceptance | - | December 5,2023,December 22,2023,March 30,2024, April 26,2024, August 17, 2024, October 11,2024, October 30,2024. | Juchao Website（www.cninfo.com.cn）No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024,2024-04,,2024-042,2024-044,2024-046,2024-047,2024-049,2024-60. |
| 26 | Sichuan Service Exp. Appliance Service Chain Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Accept labor service | Three packages, equipment repair, miscellaneous fees, installation fee etc. | Marketing price | 38,897.03 | 38,897.03 | 18.46% | 51,000 | No | Cash settlement | - | December 5,2023,December 22,2023,March 30,2024, April 26,2024, August 17, 2024, October 11,2024, October 30,2024. | Juchao Website（www.cninfo.com.cn）No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024,2024-04,,2024-042,2024-044,2024-046,2024-047,2024-049,2024-60. |
| 27 | Sichuan Hongxin Software Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Accept labor service | Software usage fee, service supporting fee and information service fee | Marketing price | 198.21 | 198.21 | 0.09% | 7,500 | No | Cash settlement | - | December 5,2023,December 22,2023,March 30,2024, April 26,2024, August 17, 2024, October 11,2024, October 30,2024. | Juchao Website（www.cninfo.com.cn）No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024,2024-04,,2024-042,2024-044,2024-046,2024-047,2024-049,2024-60. |
| 28 | Guangdong Changhong Electrics Co., | Other enterprise control under the | Accept labor service | Service support fee, network service fee etc. | Marketing price | 30.69 | 30.69 | 0.01% | 7,500 | No | Cash settlement | - | December 5,2023,December 22,2023,March 30,2024, April 26,2024, August 17, | Juchao Website（www.cninfo.com.cn）No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,20 |
| Ltd. | same controlling shareholder and ultimate controller | 2024, October 11,2024, October 30,2024. | 24-024,2024-04,,2024-042,2024-044,2024-046,2024-047,2024-049,2024-60. | |||||||||||
| 29 | Sichuan Jiahong Industrial Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Accept labor service | Meals, property management fees etc. | Marketing price | 705.35 | 705.35 | 0.33% | 5,000 | No | Cash settlement | - | December 5,2023,December 22,2023,March 30,2024, April 26,2024, August 17, 2024, October 11,2024, October 30,2024. | Juchao Website（www.cninfo.com.cn）No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024,2024-04,,2024-042,2024-044,2024-046,2024-047,2024-049,2024-60. |
| 30 | Sichuan Changhong International Hotel Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Accept labor service | Meetings fee, accommodation，Travel service | Marketing price | 130.63 | 130.63 | 0.06% | 5,000 | No | Cash settlement | - | December 5,2023,December 22,2023,March 30,2024, April 26,2024, August 17, 2024, October 11,2024, October 30,2024. | Juchao Website（www.cninfo.com.cn）No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024,2024-04,,2024-042,2024-044,2024-046,2024-047,2024-049,2024-60. |
| 31 | Sichuan Changhong Property Services Co., Ltd. | Other enterprise control under the same controlling shareholder and | Accept labor service | Property management fees | Marketing price | 11.24 | 11.24 | 0.01% | 5,000 | No | Cash settlement | - | December 5,2023,December 22,2023,March 30,2024, April 26,2024, August 17, 2024, October 11,2024, October 30,2024. | Juchao Website（www.cninfo.com.cn）No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024,2024-04,,2024-042,2024-044,2024-046,2024-047,2024-049,2024-60. |
| ultimate controller | ||||||||||||||
| 32 | Sichuan Hongwei Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Accept labor service | Training services | Marketing price | 279.20 | 279.20 | 0.13% | 7,500 | No | Cash settlement | - | December 5,2023,December 22,2023,March 30,2024, April 26,2024, August 17, 2024, October 11,2024, October 30,2024. | Juchao Website（www.cninfo.com.cn）No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024,2024-04,,2024-042,2024-044,2024-046,2024-047,2024-049,2024-60. |
| 33 | Sichuan Zhiyijia Network Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Accept labor service | Design service fee and platform usage fee | Marketing price | 10.55 | 10.55 | 0.0050% | 7,500 | No | Cash settlement | - | December 5,2023,December 22,2023,March 30,2024, April 26,2024, August 17, 2024, October 11,2024, October 30,2024. | Juchao Website（www.cninfo.com.cn）No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024,2024-04,,2024-042,2024-044,2024-046,2024-047,2024-049,2024-60. |
| 34 | Sichuan Changhong Network Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Accept labor service | Network maintenance services | Marketing price | 0.85 | 0.85 | 0.0004% | 7,500 | No | Cash settlement | - | December 5,2023,December 22,2023,March 30,2024, April 26,2024, August 17, 2024, October 11,2024, October 30,2024. | Juchao Website（www.cninfo.com.cn）No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024,2024-04,,2024-042,2024-044,2024-046,2024-047,2024-049,2024-60. |
| 35 | Miianyang Hith-Tech Hongfu Technology | An Enterprise in which the | Accept labor service | Transportation service | Marketing price | 129.31 | 129.31 | 0.06% | 200 | No | Cash settlement |
| Co., Ltd. | supervisor of the controlling shareholder acts as its legal representative | |||||||||||||
| 36 | Sichuan Changhong Jijia Fine Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Accept labor service | Commission processing fee | Marketing price | 451.37 | 451.37 | 0.21% | 3,000 | No | Spot exchange, Bank acceptance | - | December 5,2023,December 22,2023,March 30,2024, April 26,2024, August 17, 2024, October 11,2024, October 30,2024. | Juchao Website（www.cninfo.com.cn）No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024,2024-04,,2024-042,2024-044,2024-046,2024-047,2024-049,2024-60. |
| 37 | Sichuan Changhong Gerun Environmental protection Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Accept labor service | Environmental protection service | Marketing price | 11.87 | 11.87 | 0.01% | 5,000 | No | Cash settlement | - | December 5,2023,December 22,2023,March 30,2024, April 26,2024, August 17, 2024, October 11,2024, October 30,2024. | Juchao Website（www.cninfo.com.cn）No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024,2024-04,,2024-042,2024-044,2024-046,2024-047,2024-049,2024-60. |
| 38 | Sichuan Changhong Network Technology Co., Ltd. | Other enterprise control under the same controlling sharehold | Accept labor service | Network Maintenance | Marketing price | 3.05 | 3.05 | 0.00% | 7,500 | No | Cash settlement | - | December 5,2023,December 22,2023,March 30,2024, April 26,2024, August 17, 2024, October 11,2024, October 30,2024. | Juchao Website（www.cninfo.com.cn）No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024,2024-04,,2024-042,2024-044,2024-046,2024-047,2024-049,2024-60. |
| er and ultimate controller | ||||||||||||||
| 39 | Sichuan Changhong Electronic Products Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Accept labor service | Labor serves | Marketing price | 3.41 | 3.41 | 0.00% | 7,500 | No | Cash settlement | - | December 5,2023,December 22,2023,March 30,2024, April 26,2024, August 17, 2024, October 11,2024, October 30,2024. | Juchao Website（www.cninfo.com.cn）No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024,2024-04,,2024-042,2024-044,2024-046,2024-047,2024-049,2024-60. |
| 40 | Sichuan Aichuang Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Accept labor service | Technical service, warehouse management service | Marketing price | 62.07 | 62.07 | 0.03% | 5,000 | No | Cash settlement | - | December 5,2023,December 22,2023,March 30,2024, April 26,2024, August 17, 2024, October 11,2024, October 30,2024. | Juchao Website（www.cninfo.com.cn）No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024,2024-04,,2024-042,2024-044,2024-046,2024-047,2024-049,2024-60. |
| 41 | Sichuan Qiruike Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Accept labor service | Technology development service fee, instrument repair fee, inspection and certification fee, etc. | Marketing price | 903.72 | 903.72 | 0.43% | 5,000 | No | Cash settlement | - | December 5,2023,December 22,2023,March 30,2024, April 26,2024, August 17, 2024, October 11,2024, October 30,2024. | Juchao Website（www.cninfo.com.cn）No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024,2024-04,,2024-042,2024-044,2024-046,2024-047,2024-049,2024-60. |
| 42 | Sichuan Changhong Device Technology Co., Ltd | Other enterprise control under the same controllin | Accept labor service | Labor serves | Marketing price | 22.11 | 22.11 | 0.01% | 7,500 | No | Cash settlement | - | December 5,2023,December 22,2023,March 30,2024, April 26,2024, August 17, 2024, October | Juchao Website（www.cninfo.com.cn）No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024,2024-04,,2024-04 |
| g shareholder and ultimate controller | 11,2024, October 30,2024. | 2,2024-044,2024-046,2024-047,2024-049,2024-60. | ||||||||||||
| 43 | Sichuan Changhong Electric Co., Ltd. | Controlling shareholder | Sales of goods | Air conditioner, Kitchen and bathroom, small appliances | Marketing price | 121.69 | 121.69 | 0.0043% | 1,000 | No | Spot exchange, Bank acceptance | - | December 5,2023,December 22,2023,March 30,2024, April 26,2024, August 17, 2024, October 11,2024, October 30,2024. | Juchao Website（www.cninfo.com.cn）No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024,2024-04,,2024-042,2024-044,2024-046,2024-047,2024-049,2024-60. |
| 44 | Sichuan Changhong Electronics Holding Group Co., Ltd. | Controlling shareholder and ultimate controller | Sales of goods | Kitchen and bathroom, small appliances | Marketing price | 14.67 | 14.67 | 0.0005% | 3,000 | No | Spot exchange, Bank acceptance | - | December 5,2023,December 22,2023,March 30,2024, April 26,2024, August 17, 2024, October 11,2024, October 30,2024. | Juchao Website（www.cninfo.com.cn）No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024,2024-04,,2024-042,2024-044,2024-046,2024-047,2024-049,2024-60. |
| 45 | Sichuan Changhong Jijia Fine Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Sales of goods | Kitchen and bathroom, small appliances | Marketing price | 1.09 | 1.09 | 0.00004% | 3,000 | No | Cash settlement | - | December 5,2023,December 22,2023,March 30,2024, April 26,2024, August 17, 2024, October 11,2024, October 30,2024. | Juchao Website（www.cninfo.com.cn）No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024,2024-04,,2024-042,2024-044,2024-046,2024-047,2024-049,2024-60. |
| 46 | Sichuan Changhong Mold Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and | Sales of goods | Plastic pressure parts | Marketing price | 17.23 | 17.23 | 0.0006% | 3,000 | No | Cash settlement | - | December 5,2023,December 22,2023,March 30,2024, April 26,2024, August 17, 2024, October 11,2024, October 30,2024. | Juchao Website（www.cninfo.com.cn）No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024,2024-04,,2024-042,2024-044,2024-046,2024-047,2024-049,2024-60. |
| ultimate controller | ||||||||||||||
| 47 | Sichuan Zhiyijia Network Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Sales of goods | Washing machine, Refrigerator, freezer, Air conditioner, small appliances | Marketing price | 734,224.78 | 734,224.78 | 25.91% | 880,000 | No | Spot exchange, Bank acceptance | - | December 5,2023,December 22,2023,March 30,2024, April 26,2024, August 17, 2024, October 11,2024, October 30,2024. | Juchao Website（www.cninfo.com.cn）No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024,2024-04,,2024-042,2024-044,2024-046,2024-047,2024-049,2024-60. |
| 48 | Sichuan Hongwei Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Sales of goods | Smart socket, smart switch, etc | Marketing price | 0.16 | 0.16 | 0.00001% | 3,000 | No | Cash settlement | - | December 5,2023,December 22,2023,March 30,2024, April 26,2024, August 17, 2024, October 11,2024, October 30,2024. | Juchao Website（www.cninfo.com.cn）No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024,2024-04,,2024-042,2024-044,2024-046,2024-047,2024-049,2024-60. |
| 49 | Sichuan Changhong Device Technology Co., Ltd | Other enterprise control under the same controlling shareholder and ultimate controller | Sales of goods | Air-conditioning , Energy , Compressed air | Marketing price | 95.13 | 95.13 | 0.0034% | 3,000 | No | Cash settlement | - | December 5,2023,December 22,2023,March 30,2024, April 26,2024, August 17, 2024, October 11,2024, October 30,2024. | Juchao Website（www.cninfo.com.cn）No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024,2024-04,,2024-042,2024-044,2024-046,2024-047,2024-049,2024-60. |
| 50 | Sichuan Changhong Minsheng | Other enterprise control under the same | Sales of goods | Air conditioner, Refrigerator | Marketing price | 177.14 | 177.14 | 0.01% | 3,000 | No | Cash settlement | - | December 5,2023,December 22,2023,March 30,2024, April 26,2024, August 17, | Juchao Website（www.cninfo.com.cn）No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,20 |
| Logistics Co., Ltd. | controlling shareholder and ultimate controller | 2024, October 11,2024, October 30,2024. | 24-024,2024-04,,2024-042,2024-044,2024-046,2024-047,2024-049,2024-60. | |||||||||||
| 51 | Sichuan Service Exp. Appliance Service Chain Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Sales of goods | Air conditioners, inverter integrated boards, components etc. | Marketing price | 616.30 | 616.30 | 0.02% | 3,000 | No | Cash settlement | - | December 5,2023,December 22,2023,March 30,2024, April 26,2024, August 17, 2024, October 11,2024, October 30,2024. | Juchao Website（www.cninfo.com.cn）No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024,2024-04,,2024-042,2024-044,2024-046,2024-047,2024-049,2024-60. |
| 52 | Sichuan Changhong Gerun Environmental protection Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Sales of goods | Waste copper, waste wire harness, waste packaging paper bag | Marketing price | 98.43 | 98.43 | 0.0035% | 3,000 | No | Cash settlement | - | December 5,2023,December 22,2023,March 30,2024, April 26,2024, August 17, 2024, October 11,2024, October 30,2024. | Juchao Website（www.cninfo.com.cn）No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024,2024-04,,2024-042,2024-044,2024-046,2024-047,2024-049,2024-60. |
| 53 | Sichuan Changhong Real Estate Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate | Sales of goods | Kitchen ,small appliances | Marketing price | 2.39 | 2.39 | 0.0001% | 3,000 | No | Cash settlement | - | December 5,2023,December 22,2023,March 30,2024, April 26,2024, August 17, 2024, October 11,2024, October 30,2024. | Juchao Website（www.cninfo.com.cn）No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024,2024-04,,2024-042,2024-044,2024-046,2024-047,2024-049,2024-60. |
| controller | ||||||||||||||
| 54 | Sichuan Changhong Network Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Sales of goods | Air conditioner | Marketing price | 7.54 | 7.54 | 0.0003% | 3,000 | No | Cash settlement | - | December 5,2023,December 22,2023,March 30,2024, April 26,2024, August 17, 2024, October 11,2024, October 30,2024. | Juchao Website（www.cninfo.com.cn）No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024,2024-04,,2024-042,2024-044,2024-046,2024-047,2024-049,2024-60. |
| 55 | Sichuan Aoku Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Sales of goods | Printed board components, small home appliances, etc | Marketing price | 25.52 | 25.52 | 0.0009% | 3,000 | No | Cash settlement | - | December 5,2023,December 22,2023,March 30,2024, April 26,2024, August 17, 2024, October 11,2024, October 30,2024. | Juchao Website（www.cninfo.com.cn）No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024,2024-04,,2024-042,2024-044,2024-046,2024-047,2024-049,2024-60. |
| 56 | Sichuan Changhong Source Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Sales of goods | Kitchen ,small appliances | Marketing price | 0.75 | 0.75 | 0.00003% | 3,000 | No | Cash settlement | - | December 5,2023,December 22,2023,March 30,2024, April 26,2024, August 17, 2024, October 11,2024, October 30,2024. | Juchao Website（www.cninfo.com.cn）No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024,2024-04,,2024-042,2024-044,2024-046,2024-047,2024-049,2024-60. |
| 57 | Sichuan Ailian Technology Co., Ltd. | Other enterprise control under the | Sales of goods | Electric device | Marketing price | 10.54 | 10.54 | 0.0004% | 3,000 | No | Cash settlement | - | December 5,2023,December 22,2023,March 30,2024, April 26,2024, August 17, | Juchao Website（www.cninfo.com.cn）No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,20 |
| same controlling shareholder and ultimate controller | 2024, October 11,2024, October 30,2024. | 24-024,2024-04,,2024-042,2024-044,2024-046,2024-047,2024-049,2024-60. | ||||||||||||
| 58 | Sichuan Changhong New Energy Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Sales of goods | Air conditioner | Marketing price | 98.75 | 98.75 | 0.0035% | 3,000 | No | Cash settlement | - | December 5,2023,December 22,2023,March 30,2024, April 26,2024, August 17, 2024, October 11,2024, October 30,2024. | Juchao Website（www.cninfo.com.cn）No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024,2024-04,,2024-042,2024-044,2024-046,2024-047,2024-049,2024-60. |
| 59 | Sichuan Changhong International Hotel Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Sales of goods | Kitchen ,small appliances | Marketing price | 0.11 | 0.11 | 0.000004% | 3,000 | No | Cash settlement | - | December 5,2023,December 22,2023,March 30,2024, April 26,2024, August 17, 2024, October 11,2024, October 30,2024. | Juchao Website（www.cninfo.com.cn）No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024,2024-04,,2024-042,2024-044,2024-046,2024-047,2024-049,2024-60. |
| 60 | PT.CHANGHONGELECTRICINDONESIA | Other enterprise control under the same controlling shareholder and | Sales of goods | TV | Marketing price | 194.30 | 194.30 | 0.01% | 3,000 | No | Cash settlement | - | December 5,2023,December 22,2023,March 30,2024, April 26,2024, August 17, 2024, October 11,2024, October 30,2024. | Juchao Website（www.cninfo.com.cn）No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024,2024-04,,2024-042,2024-044,2024-046,2024-047,2024-049,2024-60. |
| ultimate controller | ||||||||||||||
| 61 | CHANGHONG(HK)TRADINGLIMITED | Other enterprise control under the same controlling shareholder and ultimate controller | Sales of goods | Air conditioner and part | Marketing price | 65,382.61 | 65,382.61 | 2.31% | 140,000 | No | Cash settlement | - | December 5,2023,December 22,2023,March 30,2024, April 26,2024, August 17, 2024, October 11,2024, October 30,2024. | Juchao Website（www.cninfo.com.cn）No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024,2024-04,,2024-042,2024-044,2024-046,2024-047,2024-049,2024-60. |
| 62 | CHANGHONGELECTRIC(AUSTRALIA)PTY.LTD. | Other enterprise control under the same controlling shareholder and ultimate controller | Sales of goods | Refrigerator, freezers ,washing machine and part | Marketing price | 25,696.65 | 25,696.65 | 0.91% | 140,000 | No | Cash settlement | - | December 5,2023,December 22,2023,March 30,2024, April 26,2024, August 17, 2024, October 11,2024, October 30,2024. | Juchao Website（www.cninfo.com.cn）No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024,2024-04,,2024-042,2024-044,2024-046,2024-047,2024-049,2024-60. |
| 63 | OrionPDPCo.,Ltd | Other enterprise control under the same controlling shareholder and ultimate controller | Sales of goods | Refrigerator | Marketing price | 4,062.24 | 4,062.24 | 0.14% | 6,500 | No | Cash settlement | - | December 5,2023,December 22,2023,March 30,2024, April 26,2024, August 17, 2024, October 11,2024, October 30,2024. | Juchao Website（www.cninfo.com.cn）No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024,2024-04,,2024-042,2024-044,2024-046,2024-047,2024-049,2024-60. |
| 64 | Changhong Europe Electrics.r.o | Other enterprise control | Sales of goods | Refrigerator | Marketing price | 9,553.85 | 9,553.85 | 0.34% | 12,000 | No | Cash settlement | - | December 5,2023,December 22,2023,March 30,2024, April | Juchao Website（www.cninfo.com.cn）No.:2023-066,2023-067,2 |
| under the same controlling shareholder and ultimate controller | 26,2024, August 17, 2024, October 11,2024, October 30,2024. | 023-068,2023-080,2024-007,2024-008,2024-014,2024-024,2024-04,,2024-042,2024-044,2024-046,2024-047,2024-049,2024-60. | ||||||||||||
| 65 | Changhong International Holdings (Hong Kong) Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Sales of goods | Refrigerator, freezers, Air conditioner, kitchen utensils | Marketing price | 17,436.75 | 17,436.75 | 0.62% | 30,000 | No | Cash settlement | - | December 5,2023,December 22,2023,March 30,2024, April 26,2024, August 17, 2024, October 11,2024, October 30,2024. | Juchao Website（www.cninfo.com.cn）No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024,2024-04,,2024-042,2024-044,2024-046,2024-047,2024-049,2024-60. |
| 66 | Mianyang Hongshang Real Estate Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Sales of goods | Kitchen ,small appliances | Marketing price | 1.58832 | 1.59 | 0.0001% | 3,000 | No | Cash settlement | - | December 5,2023,December 22,2023,March 30,2024, April 26,2024, August 17, 2024, October 11,2024, October 30,2024. | Juchao Website（www.cninfo.com.cn）No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024,2024-04,,2024-042,2024-044,2024-046,2024-047,2024-049,2024-60. |
| 67 | Sichuan Aichuang Science & Technology Co., Ltd. | Other enterprise control under the same controlling sharehold | Sales of goods | Kitchen ,small appliances | Marketing price | 2.26 | 2.26 | 0.00% | 3,000 | No | Cash settlement | - | December 5,2023,December 22,2023,March 30,2024, April 26,2024, August 17, 2024, October 11,2024, October 30,2024. | Juchao Website（www.cninfo.com.cn）No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024,2024-04,,2024-042,2024-044,2024-046,2024-047,2024-049,2024-60. |
| er and ultimate controller | ||||||||||||||
| 68 | Yuanxin Financial Leasing Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Sales of goods | Air conditioner | Marketing price | 256.85 | 256.85 | 0.01% | 3,000 | No | Cash settlement | - | December 5,2023,December 22,2023,March 30,2024, April 26,2024, August 17, 2024, October 11,2024, October 30,2024. | Juchao Website（www.cninfo.com.cn）No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024,2024-04,,2024-042,2024-044,2024-046,2024-047,2024-049,2024-60. |
| 69 | Mianyang Huafeng Hulian Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Sales of goods | Air conditioner | Marketing price | 790.27 | 790.27 | 0.03% | 3,000 | No | Cash settlement | - | December 5,2023,December 22,2023,March 30,2024, April 26,2024, August 17, 2024, October 11,2024, October 30,2024. | Juchao Website（www.cninfo.com.cn）No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024,2024-04,,2024-042,2024-044,2024-046,2024-047,2024-049,2024-60. |
| 70 | Sichuan Changhong Jiahua Information Product Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Sales of goods | Air conditioner | Marketing price | 43.24 | 43.24 | 0.0015% | 3,000 | No | Cash settlement | - | December 5,2023,December 22,2023,March 30,2024, April 26,2024, August 17, 2024, October 11,2024, October 30,2024. | Juchao Website（www.cninfo.com.cn）No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024,2024-04,,2024-042,2024-044,2024-046,2024-047,2024-049,2024-60. |
| 71 | Sichuan | Controlling | Providing | Labour service | Marketing price | 0.59 | 0.59 | 0.01% | 3,000 | No | Cash settlement | - | December 5,2023,December | Juchao Website（www.cninfo.com.cn） |
| Changhong Electronics Holding Group Co., Ltd. | shareholder and ultimate controller | services | 22,2023,March 30,2024, April 26,2024, August 17, 2024, October 11,2024, October 30,2024. | No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024,2024-04,,2024-042,2024-044,2024-046,2024-047,2024-049,2024-60. | ||||||||||
| 72 | Sichuan Changhong Mold Plastic Tech. Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Providing services | Property management services, warehousing services, etc | Marketing price | 409.98 | 409.98 | 5.82% | 10,000 | No | Cash settlement | - | December 5,2023,December 22,2023,March 30,2024, April 26,2024, August 17, 2024, October 11,2024, October 30,2024. | Juchao Website（www.cninfo.com.cn）No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024,2024-04,,2024-042,2024-044,2024-046,2024-047,2024-049,2024-60. |
| 73 | Sichuan Changhong Jijia Fine Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Providing services | Property management services, warehousing services, etc | Marketing price | 45.60 | 45.60 | 0.65% | 3,000 | No | Spot exchange, Bank acceptance | - | December 5,2023,December 22,2023,March 30,2024, April 26,2024, August 17, 2024, October 11,2024, October 30,2024. | Juchao Website（www.cninfo.com.cn）No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024,2024-04,,2024-042,2024-044,2024-046,2024-047,2024-049,2024-60. |
| 74 | Sichuan Aichuang Science & Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate | Providing services | Labor service | Marketing price | 95.59 | 95.59 | 1.36% | 3,000 | No | Cash settlement | - | December 5,2023,December 22,2023,March 30,2024, April 26,2024, August 17, 2024, October 11,2024, October 30,2024. | Juchao Website（www.cninfo.com.cn）No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024,2024-04,,2024-042,2024-044,2024-046,2024-047,2024-049,2024-60. |
| controller | ||||||||||||||
| 75 | Sichuan Huafeng Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Providing services | Labor service | Marketing price | -1.12 | -1.12 | -0.02% | 3,000 | No | Cash settlement | - | December 5,2023,December 22,2023,March 30,2024, April 26,2024, August 17, 2024, October 11,2024, October 30,2024. | Juchao Website（www.cninfo.com.cn）No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024,2024-04,,2024-042,2024-044,2024-046,2024-047,2024-049,2024-60. |
| 76 | Sichuan Zhiyijia Network Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Providing services | Service fee | Marketing price | 10.14 | 10.14 | 0.14% | 7,500 | No | Cash settlement | - | December 5,2023,December 22,2023,March 30,2024, April 26,2024, August 17, 2024, October 11,2024, October 30,2024. | Juchao Website（www.cninfo.com.cn）No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024,2024-04,,2024-042,2024-044,2024-046,2024-047,2024-049,2024-60. |
| 77 | Sichuan Changhong Electric Co., Ltd. | Controlling shareholder | Providing services | Labor service | Marketing price | 757.74 | 757.74 | 10.76% | 7,500 | No | Cash settlement | - | December 5,2023,December 22,2023,March 30,2024, April 26,2024, August 17, 2024, October 11,2024, October 30,2024. | Juchao Website（www.cninfo.com.cn）No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024,2024-04,,2024-042,2024-044,2024-046,2024-047,2024-049,2024-60. |
| 78 | Sichuan Changhong Device Technology Co., Ltd. | Other enterprise control under the same controlling sharehold | Providing services | Technical service fee | Marketing price | 55.28 | 55.28 | 0.78% | 7,500 | No | Cash settlement | - | December 5,2023,December 22,2023,March 30,2024, April 26,2024, August 17, 2024, October 11,2024, October 30,2024. | Juchao Website（www.cninfo.com.cn）No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024,2024-04,,2024-042,2024-044,2024-046,2024-047,2024-049,2024-60. |
| er and ultimate controller | ||||||||||||||
| 79 | Sichuan Changhong New Energy Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Providing services | Installation service | Marketing price | 66.06 | 66.06 | 0.94% | 3,000 | No | Cash settlement | - | December 5,2023,December 22,2023,March 30,2024, April 26,2024, August 17, 2024, October 11,2024, October 30,2024. | Juchao Website（www.cninfo.com.cn）No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024,2024-04,,2024-042,2024-044,2024-046,2024-047,2024-049,2024-60. |
| 80 | Sichuan Changhong Network Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Providing services | Installation service, maintenance service | Marketing price | 17.35 | 17.35 | 0.25% | 7,500 | No | Cash settlement | - | December 5,2023,December 22,2023,March 30,2024, April 26,2024, August 17, 2024, October 11,2024, October 30,2024. | Juchao Website（www.cninfo.com.cn）No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024,2024-04,,2024-042,2024-044,2024-046,2024-047,2024-049,2024-60. |
| 81 | Mianyang Huafeng Hulian Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Providing services | Technical service, Repair Service | Marketing price | 1,072.41 | 1,072.41 | 15.23% | 3,000 | No | Cash settlement | - | December 5,2023,December 22,2023,March 30,2024, April 26,2024, August 17, 2024, October 11,2024, October 30,2024. | Juchao Website（www.cninfo.com.cn）No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024,2024-04,,2024-042,2024-044,2024-046,2024-047,2024-049,2024-60. |
| 82 | Changhong Huayi | Other enterprise | Providing | Labor service | Marketing price | 139.65 | 139.65 | 1.98% | 200 | No | Cash settlement | - | December 5,2023,December | Juchao Website（www.cninfo.com.cn） |
| Compressor Co., Ltd. | control under the same controlling shareholder and ultimate controller | services | 22,2023,March 30,2024, April 26,2024, August 17, 2024, October 11,2024, October 30,2024. | No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024,2024-04,,2024-042,2024-044,2024-046,2024-047,2024-049,2024-60. | ||||||||||
| 83 | Sichuan Changhong Minsheng Logistics Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Providing services | maintenance service, Property Management | Marketing price | 13.66 | 13.66 | 0.19% | 7,500 | No | Cash settlement | - | December 5,2023,December 22,2023,March 30,2024, April 26,2024, August 17, 2024, October 11,2024, October 30,2024. | Juchao Website（www.cninfo.com.cn）No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024,2024-04,,2024-042,2024-044,2024-046,2024-047,2024-049,2024-60. |
| 84 | Sichuan Ailian Science & Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Providing services | Warehouse | Marketing price | 0.32 | 0.32 | 0.0046% | 3,000 | No | Cash settlement | - | December 5,2023,December 22,2023,March 30,2024, April 26,2024, August 17, 2024, October 11,2024, October 30,2024. | Juchao Website（www.cninfo.com.cn）No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024,2024-04,,2024-042,2024-044,2024-046,2024-047,2024-049,2024-60. |
| 85 | Sichuan Changhong Xinwang Technology Co., Ltd. | Other enterprise control under the same controlling | Providing services | Labor service | Marketing price | -10.14 | -10.14 | -0.14% | 7,500 | No | Cash settlement | - | December 5,2023,December 22,2023,March 30,2024, April 26,2024, August 17, 2024, October 11,2024, October 30,2024. | Juchao Website（www.cninfo.com.cn）No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024,2024-04,,2024-042,2024-044,2024-046,2024-047,2024-049,2024-60. |
| shareholder and ultimate controller | ||||||||||||||
| 86 | Sichuan Service Exp. Appliance Service Chain Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Providing services | Labor service | Marketing price | 146.39 | 146.39 | 2.08% | 7,500 | No | Cash settlement | - | December 5,2023,December 22,2023,March 30,2024, April 26,2024, August 17, 2024, October 11,2024, October 30,2024. | Juchao Website（www.cninfo.com.cn）No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024,2024-04,,2024-042,2024-044,2024-046,2024-047,2024-049,2024-60. |
| 87 | Sichuan Aoku Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Providing services | Labor service | Marketing price | 7.79 | 7.79 | 0.11% | 3,000 | No | Cash settlement | - | December 5,2023,December 22,2023,March 30,2024, April 26,2024, August 17, 2024, October 11,2024, October 30,2024. | Juchao Website（www.cninfo.com.cn）No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024,2024-04,,2024-042,2024-044,2024-046,2024-047,2024-049,2024-60. |
| 88 | Sichuan Changhong International Hotel Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Providing services | Maintenance service | Marketing price | 4.29 | 4.29 | 0.06% | 3,000 | No | Cash settlement | - | December 5,2023,December 22,2023,March 30,2024, April 26,2024, August 17, 2024, October 11,2024, October 30,2024. | Juchao Website（www.cninfo.com.cn）No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024,2024-04,,2024-042,2024-044,2024-046,2024-047,2024-049,2024-60. |
| 89 | Sichuan | Other | Providin | Property | Marketing | 10.14 | 10.14 | 0.14% | 7,500 | No | Cash settlement | - | December | Juchao Website |
| Changhong International Holding（HK）Co., Ltd. | enterprise control under the same controlling shareholder and ultimate controller | g services | Management | price | 5,2023,December 22,2023,March 30,2024, April 26,2024, August 17, 2024, October 11,2024, October 30,2024. | （www.cninfo.com.cn）No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024,2024-04,,2024-042,2024-044,2024-046,2024-047,2024-049,2024-60. | ||||||||
| 90 | Sichuan Changhong Electronic Products Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Provide labor | Package service | Marketing price | 0.36 | 0.36 | 0.01% | 7,500 | No | Cash settlement | - | December 5,2023,December 22,2023,March 30,2024, April 26,2024, August 17, 2024, October 11,2024, October 30,2024. | Juchao Website（www.cninfo.com.cn）No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024,2024-04,,2024-042,2024-044,2024-046,2024-047,2024-049,2024-60. |
| 91 | Sichuan Qiruike Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Providing services | Labor service | Marketing price | 0.14 | 0.14 | 0.0021% | 3,000 | No | Cash settlement | - | December 5,2023,December 22,2023,March 30,2024, April 26,2024, August 17, 2024, October 11,2024, October 30,2024. | Juchao Website（www.cninfo.com.cn）No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024,2024-04,,2024-042,2024-044,2024-046,2024-047,2024-049,2024-60. |
| 92 | Yuanxin Financial Leasing Co., Ltd. | Other enterprise control under the same controlling sharehold | Providing services | Consulting service | Marketing price | 57.00 | 57.00 | 0.81% | 7,500 | No | Cash settlement | - | December 5,2023,December 22,2023,March 30,2024, April 26,2024, August 17, 2024, October 11,2024, October 30,2024. | Juchao Website（www.cninfo.com.cn）No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024,2024-04,,2024-042,2024-044,2024-046,2024-047,2024-049,2024-60. |
| er and ultimate controller | ||||||||||||||
| 93 | Sichuan Changhong Property Service Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Providing services | Technical service fee | Marketing price | 21.40 | 21.40 | 0.30% | 3,000 | No | Cash settlement | - | December 5,2023,December 22,2023,March 30,2024, April 26,2024, August 17, 2024, October 11,2024, October 30,2024. | Juchao Website（www.cninfo.com.cn）No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024,2024-04,,2024-042,2024-044,2024-046,2024-047,2024-049,2024-60. |
| 94 | Sichuan Changhong Jiechuang Lithium Battery Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Providing services | Installation service, Labor service | Marketing price | 5.39 | 5.39 | 0.08% | 3,000 | No | Cash settlement | - | December 5,2023,December 22,2023,March 30,2024, April 26,2024, August 17, 2024, October 11,2024, October 30,2024. | Juchao Website（www.cninfo.com.cn）No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024,2024-04,,2024-042,2024-044,2024-046,2024-047,2024-049,2024-60. |
| 95 | Sichuan Changhong Education and Technology Co., Ltd | Other enterprise control under the same controlling shareholder and ultimate controller | Providing services | Air conditioning maintenance service | Marketing price | 0.90 | 0.90 | 0.01% | 3,000 | No | Cash settlement | - | December 5,2023,December 22,2023,March 30,2024, April 26,2024, August 17, 2024, October 11,2024, October 30,2024. | Juchao Website（www.cninfo.com.cn）No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024,2024-04,,2024-042,2024-044,2024-046,2024-047,2024-049,2024-60. |
| 96 | Sichuan Aichuang | Other enterprise | Rent to the | Warehouse for rent | Marketing price | 0.96 | 0.96 | 0.02% | 3,000 | No | Cash settlement | - | December 5,2023,December | Juchao Website（www.cninfo.com.cn） |
| Technology Co., Ltd. | control under the same controlling shareholder and ultimate controller | related party | 22,2023,March 30,2024, April 26,2024, August 17, 2024, October 11,2024, October 30,2024. | No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024,2024-04,,2024-042,2024-044,2024-046,2024-047,2024-049,2024-60. | ||||||||||
| 97 | Sichuan Aoku Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Rent to the related party | Warehouse for rent | Marketing price | 0.97 | 0.97 | 0.02% | 3,000 | No | Cash settlement | - | December 5,2023,December 22,2023,March 30,2024, April 26,2024, August 17, 2024, October 11,2024, October 30,2024. | Juchao Website（www.cninfo.com.cn）No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024,2024-04,,2024-042,2024-044,2024-046,2024-047,2024-049,2024-60. |
| 98 | Sichuan Service Exp. Appliance Service Chain Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Rent to the related party | Rental apartment | Marketing price | 44.66 | 44.66 | 0.75% | 4,000 | No | Cash settlement | - | December 5,2023,December 22,2023,March 30,2024, April 26,2024, August 17, 2024, October 11,2024, October 30,2024. | Juchao Website（www.cninfo.com.cn）No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024,2024-04,,2024-042,2024-044,2024-046,2024-047,2024-049,2024-60. |
| 99 | Sichuan Qiruik Technology Co., Ltd. | Other enterprise control under the same controlling | Rent to the related party | Lease of factory | Marketing price | 4.73 | 4.73 | 0.08% | 3,000 | No | Cash settlement | - | December 5,2023,December 22,2023,March 30,2024, April 26,2024, August 17, 2024, October 11,2024, October 30,2024. | Juchao Website（www.cninfo.com.cn）No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024,2024-04,,2024-042,2024-044,2024-046,2024-047,2024-049,2024-60. |
| shareholder and ultimate controller | ||||||||||||||
| 100 | Sichuan Changhong Electric Co., Ltd. | Controlling shareholder | Rent to the related party | Lease of factory, equipment | Marketing price | 84.40 | 84.40 | 1.42% | 4,000 | No | Cash settlement | - | December 5,2023,December 22,2023,March 30,2024, April 26,2024, August 17, 2024, October 11,2024, October 30,2024. | Juchao Website（www.cninfo.com.cn）No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024,2024-04,,2024-042,2024-044,2024-046,2024-047,2024-049,2024-60. |
| 101 | Sichuan Changhong Jijia Fine Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Rent to the related party | Rental apartment, warehouses,plants,equipment | Marketing price | 696.97 | 696.97 | 11.73% | 4,000 | No | Cash settlement | - | December 5,2023,December 22,2023,March 30,2024, April 26,2024, August 17, 2024, October 11,2024, October 30,2024. | Juchao Website（www.cninfo.com.cn）No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024,2024-04,,2024-042,2024-044,2024-046,2024-047,2024-049,2024-60. |
| 102 | Sichuan Changhong Education and Technology Co., Ltd1 | Controlling shareholder and ultimate controller | Lease from related parties | Lease of factory | Marketing price | 1.73 | 1.73 | 0.03% | 3,000 | No | Cash settlement | - | December 5,2023,December 22,2023,March 30,2024, April 26,2024, August 17, 2024, October 11,2024, October 30,2024. | Juchao Website（www.cninfo.com.cn）No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024,2024-04,,2024-042,2024-044,2024-046,2024-047,2024-049,2024-60. |
| 103 | Sichuan Changhong Precision Electronics Tech. Co., Ltd. | Other enterprise control under the same controlling shareholder and | Rent to the related party | Rental apartment | Marketing price | 84.59 | 84.59 | 1.42% | 4,000 | No | Cash settlement | - | December 5,2023,December 22,2023,March 30,2024, April 26,2024, August 17, 2024, October 11,2024, October 30,2024. | Juchao Website（www.cninfo.com.cn）No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024,2024-04,,2024-042,2024-044,2024-046,2024-047,2024-049,2024-60. |
| ultimate controller | ||||||||||||||
| 104 | Sichuan Changhong Minsheng Logistics Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Rent to the related party | Rental apartment, office, factory | Marketing price | 47.56 | 47.56 | 0.80% | 4,000 | No | Cash settlement | - | December 5,2023,December 22,2023,March 30,2024, April 26,2024, August 17, 2024, October 11,2024, October 30,2024. | Juchao Website（www.cninfo.com.cn）No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024,2024-04,,2024-042,2024-044,2024-046,2024-047,2024-049,2024-60. |
| 105 | Sichuan Changhong Mold Plastic Tech. Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Rent to the related party | Serviced apartment, warehouse, workshop, equipment and living quarters | Marketing price | 1,826.96 | 1,826.96 | 30.74% | 4,000 | No | Cash settlement | - | December 5,2023,December 22,2023,March 30,2024, April 26,2024, August 17, 2024, October 11,2024, October 30,2024. | Juchao Website（www.cninfo.com.cn）No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024,2024-04,,2024-042,2024-044,2024-046,2024-047,2024-049,2024-60. |
| 106 | Sichuan Changhong Device Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Rent to the related party | Lease of factory | Marketing price | 128.60 | 128.60 | 2.16% | 4,000 | No | Cash settlement | - | December 5,2023,December 22,2023,March 30,2024, April 26,2024, August 17, 2024, October 11,2024, October 30,2024. | Juchao Website（www.cninfo.com.cn）No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024,2024-04,,2024-042,2024-044,2024-046,2024-047,2024-049,2024-60. |
| 107 | Sichuan Zhiyijia Network | Other enterprise control | Rent to the related | Rental apartment | Marketing price | 18.83 | 18.83 | 0.32% | 4,000 | No | Cash settlement | - | December 5,2023,December 22,2023,March 30,2024, April | Juchao Website（www.cninfo.com.cn）No.:2023-066,2023-067,2 |
| Technology Co., Ltd. | under the same controlling shareholder and ultimate controller | party | 26,2024, August 17, 2024, October 11,2024, October 30,2024. | 023-068,2023-080,2024-007,2024-008,2024-014,2024-024,2024-04,,2024-042,2024-044,2024-046,2024-047,2024-049,2024-60. | ||||||||||
| 108 | Chengdu Changhong Electronic Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Leasing from related party | Leasing office | Marketing price | 69.14 | 69.14 | 1.16% | 4,000 | No | Cash settlement | - | December 5,2023,December 22,2023,March 30,2024, April 26,2024, August 17, 2024, October 11,2024, October 30,2024. | Juchao Website（www.cninfo.com.cn）No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024,2024-04,,2024-042,2024-044,2024-046,2024-047,2024-049,2024-60. |
| 109 | Guangdong Changhong Electrics Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Leasing from related party | Lease of staff dormitory, plant | Marketing price | 12.28 | 12.28 | 0.21% | 4,000 | No | Cash settlement | - | December 5,2023,December 22,2023,March 30,2024, April 26,2024, August 17, 2024, October 11,2024, October 30,2024. | Juchao Website（www.cninfo.com.cn）No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024,2024-04,,2024-042,2024-044,2024-046,2024-047,2024-049,2024-60. |
| 110 | Sichuan Jiahong Industrial Co., Ltd. | Other enterprise control under the same controlling sharehold | Leasing from related party | Lease of staff dormitory | Marketing price | 55.24 | 55.24 | 0.93% | 5,000 | No | Cash settlement | - | December 5,2023,December 22,2023,March 30,2024, April 26,2024, August 17, 2024, October 11,2024, October 30,2024. | Juchao Website（www.cninfo.com.cn）No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024,2024-04,,2024-042,2024-044,2024-046,2024-047,2024-049,2024-60. |
| er and ultimate controller | ||||||||||||||
| 111 | Sichuan Changhong Electric Co., Ltd. | Controlling shareholder | Leasing from related party | Lease of laboratory and workshop | Marketing price | 401.97 | 401.97 | 6.76% | 4,000 | No | Cash settlement | - | December 5,2023,December 22,2023,March 30,2024, April 26,2024, August 17, 2024, October 11,2024, October 30,2024. | Juchao Website（www.cninfo.com.cn）No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024,2024-04,,2024-042,2024-044,2024-046,2024-047,2024-049,2024-60. |
| 112 | Sichuan Changhong Electronics Holding Group Co., Ltd. | Controlling shareholder and ultimate controller | Leasing from related party | Rental stores | Marketing price | 19.51 | 19.51 | 0.33% | 293,800 | No | Cash settlement | - | December 5,2023,December 22,2023,March 30,2024, April 26,2024, August 17, 2024, October 11,2024, October 30,2024. | Juchao Website（www.cninfo.com.cn）No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024,2024-04,,2024-042,2024-044,2024-046,2024-047,2024-049,2024-60. |
| 113 | Sichuan Zhiyijia Network Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Rent to the related party | Rental office | Marketing price | 0.50 | 0.50 | 0.01% | 4,000 | No | Cash settlement | - | December 5,2023,December 22,2023,March 30,2024, April 26,2024, August 17, 2024, October 11,2024, October 30,2024. | Juchao Website（www.cninfo.com.cn）No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024,2024-04,,2024-042,2024-044,2024-046,2024-047,2024-049,2024-60. |
| 114 | Changhong Huayi Compression Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate | Rent to the related party | Lease of staff dormitory | Marketing price | 11.48 | 11.48 | 0.19% | 80,000 | No | Cash settlement | - | December 5,2023,December 22,2023,March 30,2024, April 26,2024, August 17, 2024, October 11,2024, October 30,2024. | Juchao Website（www.cninfo.com.cn）No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024,2024-04,,2024-042,2024-044,2024-046,2024-047,2024-049,2024-60. |
| controller | ||||||||||||||
| 115 | Sichuan Changhong Intelligent Manufacturing Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Purchase and construction of fixed assets | Line body transformation | Marketing price | 35.24 | 35.24 | 0.07% | 500 | No | Cash settlement | - | December 5,2023,December 22,2023,March 30,2024, April 26,2024, August 17, 2024, October 11,2024, October 30,2024. | Juchao Website（www.cninfo.com.cn）No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024,2024-04,,2024-042,2024-044,2024-046,2024-047,2024-049,2024-60. |
| 116 | Sichuan Changhong Electric Co., Ltd. | Controlling shareholder | Leasing from related party | Laboratory infrastructure construction | Marketing price | 95.26 | 95.26 | 0.20% | 3,000 | No | Cash settlement | - | December 5,2023,December 22,2023,March 30,2024, April 26,2024, August 17, 2024, October 11,2024, October 30,2024. | Juchao Website（www.cninfo.com.cn）No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024,2024-04,,2024-042,2024-044,2024-046,2024-047,2024-049,2024-60. |
| 117 | Sichuan Zhiyijia Network Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Purchase of fixed assets | TV | Marketing price | 7.88 | 7.88 | 0.02% | 3,000 | No | Cash settlement | - | December 5,2023,December 22,2023,March 30,2024, April 26,2024, August 17, 2024, October 11,2024, October 30,2024. | Juchao Website（www.cninfo.com.cn）No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024,2024-04,,2024-042,2024-044,2024-046,2024-047,2024-049,2024-60. |
| 118 | Sichuan Hongwei Technology Co., Ltd. | Other enterprise control under the same controlling sharehold | Purchase of fixed assets | Data center large screen | Marketing price | 28.10 | 28.10 | 0.06% | 3,000 | No | Cash settlement | - | December 5,2023,December 22,2023,March 30,2024, April 26,2024, August 17, 2024, October 11,2024, October 30,2024. | Juchao Website（www.cninfo.com.cn）No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024,2024-04,,2024-042,2024-044,2024-046,2024-047,2024-049,2024-60. |
| er and ultimate controller | ||||||||||||||
| 119 | 081 Electronics Group Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Purchase of fixed assets | Archives room equipment | Marketing price | 18.46 | 18.46 | 0.04% | 3,000 | No | Cash settlement | - | December 5,2023,December 22,2023,March 30,2024, April 26,2024, August 17, 2024, October 11,2024, October 30,2024. | Juchao Website（www.cninfo.com.cn）No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024,2024-04,,2024-042,2024-044,2024-046,2024-047,2024-049,2024-60. |
| 120 | Sichuan Qiruik Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Purchase Intangible assets | Equipment | Marketing price | 14.69 | 14.69 | 0.03% | 5,000 | No | Cash settlement | - | December 5,2023,December 22,2023,March 30,2024, April 26,2024, August 17, 2024, October 11,2024, October 30,2024. | Juchao Website（www.cninfo.com.cn）No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024,2024-04,,2024-042,2024-044,2024-046,2024-047,2024-049,2024-60. |
| 121 | Sichuan Hongxin Software Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Purchase Intangible assets | Information management | Marketing price | 67.92 | 67.92 | 0.14% | 3,000 | No | Cash settlement | - | December 5,2023,December 22,2023,March 30,2024, April 26,2024, August 17, 2024, October 11,2024, October 30,2024. | Juchao Website（www.cninfo.com.cn）No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024,2024-04,,2024-042,2024-044,2024-046,2024-047,2024-049,2024-60. |
| 122 | Sichuan Hongxin | Other enterprise | Purchase Intangibl | Data center large screen | Marketing price | 155.19 | 155.19 | 0.32% | 3,000 | No | Cash settlement | - | December 5,2023,December | Juchao Website（www.cninfo.com.cn） |
| Software Co., Ltd. | control under the same controlling shareholder and ultimate controller | e assets | 22,2023,March 30,2024, April 26,2024, August 17, 2024, October 11,2024, October 30,2024. | No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024,2024-04,,2024-042,2024-044,2024-046,2024-047,2024-049,2024-60. | ||||||||||
| 123 | Sichuan Changhong Electric Co., Ltd. | Controlling shareholder | Sales of Fixed assets | Equipment | Marketing price | 176.16 | 176.16 | 35.83% | 3,000 | No | Cash settlement | - | December 5,2023,December 22,2023,March 30,2024, April 26,2024, August 17, 2024, October 11,2024, October 30,2024. | Juchao Website（www.cninfo.com.cn）No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024,2024-04,,2024-042,2024-044,2024-046,2024-047,2024-049,2024-60. |
| 124 | Sichuan Qiruik Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Sales of Fixed assets | Equipment | Marketing price | 35.90 | 35.90 | 7.30% | 3,000 | No | Cash settlement | - | December 5,2023,December 22,2023,March 30,2024, April 26,2024, August 17, 2024, October 11,2024, October 30,2024. | Juchao Website（www.cninfo.com.cn）No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024,2024-04,,2024-042,2024-044,2024-046,2024-047,2024-049,2024-60. |
| 125 | Guangyuan Changhong Electric Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Sales of Fixed assets | Equipment | Marketing price | 8.36 | 8.36 | 1.70% | 3,000 | No | Cash settlement | - | December 5,2023,December 22,2023,March 30,2024, April 26,2024, August 17, 2024, October 11,2024, October 30,2024. | Juchao Website（www.cninfo.com.cn）No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024,2024-04,,2024-042,2024-044,2024-046,2024-047,2024-049,2024-60. |
| 126 | Sichuan Service Exp. Appliance Service Chain Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Sales of Fixed assets | Equipment | Marketing price | 1.45 | 1.45 | 0.29% | 3,000 | No | Cash settlement | - | December 5,2023,December 22,2023,March 30,2024, April 26,2024, August 17, 2024, October 11,2024, October 30,2024. | Juchao Website（www.cninfo.com.cn）No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024,2024-04,,2024-042,2024-044,2024-046,2024-047,2024-049,2024-60. |
| 127 | Sichuan Changhong Mold Plastic Tech. Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Sales of Fixed assets | Equipment | Marketing price | 5.81 | 5.81 | 1.18% | 3,000 | No | Cash settlement | - | December 5,2023,December 22,2023,March 30,2024, April 26,2024, August 17, 2024, October 11,2024, October 30,2024. | Juchao Website（www.cninfo.com.cn）No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024,2024-04,,2024-042,2024-044,2024-046,2024-047,2024-049,2024-60. |
| 128 | Yuanxin Financial Leasing Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Financing business | Financing business | Marketing price | 149,852.72 | 149,852.72 | 209,000 | No | Cash settlement | - | December 5,2023,December 22,2023,March 30,2024, April 26,2024, August 17, 2024, October 11,2024, October 30,2024. | Juchao Website（www.cninfo.com.cn）No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024,2024-04,,2024-042,2024-044,2024-046,2024-047,2024-049,2024-60. | |
| Total | -- | -- | 1,666,569.09 | -- | 2,127,700 | -- | -- | -- | -- | -- | ||||
| Detail of sales return with major amount involved | Not applicable | |||||||||||||
| Report the actual implementation of the daily related transactions which were projected about their total | 1 It is estimated that the related transaction amount resulted by purchasing goods (including door shell and plastic products etc.) and accepting fuel and power from Sichuan Changhong and its subsidiary by the Company for year of 2024 was 2,,690 million yuan at most (tax-excluded), actually 2,092.9895 million yuan occurred in | |||||||||||||
| amount by types during the reporting period (if applicable) | reporting period. It is estimated that the amount of related-party transactions of the company's purchase of goods from Sichuan Changhong Jijia Fine Co., Ltd. in 2024 will not exceed 650 million yuan, although the actual amount incurred during the reporting period was 657.5166 million yuan. and the actual total amount of routine related party transactions between the Company and Sichuan Changhong and its subsidiaries (including Changhong Jijia and its subsidiaries) does not exceed the estimated total amount, which is in line with the regulations of Article 25 of "Self-Regulatory Guidelines for Listed Companies on the Shenzhen Stock Exchange No. 7-Transactions and Related Party Transactions". |
| 2. It is estimated that the related transaction amount resulted by purchasing compressors, Sell goods, accept or provide services with Changhong Huayi and its subsidiary by the Company for year of 2024 was 802 million yuan at most (tax-excluded), actually 568.7796 million yuan occurred in reporting period. | |
| 3. It is estimated that the related transaction amount resulted by purchasing or selling equipment, software, maintenance and spare parts and molds etc. from Sichuan Changhong and its subsidiary by the Company for year of 2024 was 30 million yuan at most (tax-excluded), actually 5.6459 million yuan occurred in reporting period. | |
| 4. It is estimated that the related transaction amount resulted by selling goods and providing fuel and power to Sichuan Changhong and its subsidiary by the Company for year of 2024 was 10,660 million yuan at most (tax-excluded), actually 8,538.2845 million yuan occurred in reporting period. | |
| 5. It is estimated that the related transaction amount resulted by leasing business to Sichuan Changhong and its subsidiary by the Company for year of 2024 was 40 million yuan at most (tax-excluded), actually 34.1645 million yuan occurred in reporting period. | |
| 6. It is estimated that the related transaction amount from domestic finished goods logistic business outsourcing to Sichuan Changhong Minsheng Logistics Co., Ltd. by the Company for year of 2024 was 750 million yuan at most (tax-excluded), actually 690.6046 million yuan occurred in reporting period. | |
| 7. It is estimated that the related transaction amount from after sales service of domestic goods outsourcing to Sichuan Service Exp. Appliance Service Chain Co., Ltd. by the Company for year of 2024 was 510 million yuan at most actually 388.9703 million yuan occurred in reporting period. | |
| 8. It is estimated that the related transaction amount resulted by accepting other service and labor service etc. or providing other service and labor service etc. to Sichuan Changhong and its subsidiary by the Company for year of 2024 was 205 million yuan at most (tax-excluded), actually 96.3535 million yuan occurred in reporting period. | |
| 9. It is estimated that the related transaction amount resulted by selling goods and leasing business from Sichuan Changhong Electronics Holding Group Co., Ltd and its subsidiary by the Company for year of 2024 was 95 million yuan at most (tax-excluded), actually 64.2243 million yuan occurred in reporting period. | |
| 10. It is estimated that the related transaction amount resulted by purchasing goods and receiving labor services, fuel power, leasing and purchasing equipment etc. from Sichuan Changhong Electronics Holding Group Co., Ltd. and its subsidiary by the Company for year of 2024 was 3,403 million yuan at most (tax-excluded), actually 2,685.8539 million yuan occurred in reporting period. | |
| 11. It is estimated that the related transaction amount resulted by received the financing lease, commercial factoring and bill financing from Yuanxin Financial Lease Co., Ltd for year of 2024 was 2,090 million yuan at most, actually 1,498.5272 million yuan occurred in reporting period. | |
| Reasons for major differences between trading price and market reference price (if applicable) | Not applicable |
Note: According to the Shenzhen Stock Exchange's "Listing Rules" and the company's "Authorization Management System" and other relevant regulations, related party transactions betweenthe company and related parties with an amount less than 3 million yuan (including 3 million yuan) shall be implemented with the approval of the company's president. Therefore, during thereporting period, the related-party transactions between the company and its related party Mianyang High-tech Zone Hongfu Technology Co., Ltd. were within 3 million yuan , and has beenapproved by the company's president.
(ii) Related transactions by assets acquisition and sold
√ Applicable □Not applicable
| Related party | Relationship | Type | Contents | Pricing | Carrying value of assets transferred (10,000 yuan) | Appraised value of assets transferred (10,000 yuan) (if any) | Transferred price (10,000 yuan) | Settlement terms | Gain/loss on trading(10,000 yuan) | Date of disclosure | Index of disclosure |
| Sichuan Changhong Electric Co.,Ltd. | Controlling shareholder | Related-party equity acquisition | The Company acquired 99% equity of Hefei Changhong Industry Co., Ltd. held by Sichuan Changhong Electric Co.,Ltd. | market price | 23,255 | 37,128.29 | 37,128.29 | Cash | - | October 12,2024 | Juchao Website www.cninfo.com.cn （2024-048） |
| Sichuan Changhong Venture Capital Co., Ltd. | Other enterprises controlled by the same controlling shareholder and ultimate controlling party | Related-party equity acquisition | Hefei Meiling IOT Technology Co., Ltd., a wholly-owned subsidiary of the Company, acquired 1% equity of Hefei Industry held by Sichuan Changhong Venture Capital Co., Ltd. | market price | 234.9 | 375.03 | 375.03 | Cash | - | October 12,2024 | Juchao Website www.cninfo.com.cn （2024-048） |
| Reasons for major differences between transferred price and carrying value or appraised value (if any) | Not applicable | ||||||||||
| Impact on operation result and financial status | This transaction is in line with the Company's strategic planning and development direction, solves the problems of industrial development and resource shortage, and meets the needs of capacity expansion of medium and high-end refrigerators, expansion of its own logistics warehouse and integrated layout of home appliances and homes. The transaction funds come from the Company's own funds. At present, as the Company has abundant funds, the transaction funds will not cause cash flow shortage to the Company, nor will it affect the funds required for the Company's normal production and operation. | ||||||||||
| Performance during the reporting period if relevant trading involves a performance covenant | Not applicable | ||||||||||
(iii) Related party transaction of joint foreign investment
□Applicable √ Not applicable
No such cases in the reporting period.(iv) Connect of related liability and debt
√ Applicable □ Not applicable
Whether has non-operational contact of related liability and debts or not
□Yes √ No
No non-operational contact of related liability or debts in Period(v) Contact with the related finance companies
√ Applicable □ Not applicable
Deposit business
| Related party | Relationship | Maximum daily deposit limit (In 10 thousand yuan) | Deposit interest rate range | Opening balance (In 10 thousand yuan) | Amount for the Period | Ending Balance (10 thousand yuan) | |
| Total deposit amount for the Period (10 thousand yuan) | The total amount withdrawn in the Period (10 thousand yuan) | ||||||
| Sichuan Changhong Group Finance Co., Ltd. | Other enterprises controlled by the same controlling shareholder and ultimate controller | 450,000.00 | 0.42%-2.35% | 426,145.85 | 5,957,451.79 | 5,935,746.83 | 447,850.81 |
Credit extension or other financial business
| Related party | Relationship | Type of business | Total amount ( 10 thousand yuan) | Actual amount ( 10 thousand yuan) |
| Sichuan Changhong Group Finance Co., Ltd. | Other enterprises controlled by the same controlling shareholder and ultimate controller | Other financial services - note issuance | 300,000.00 | 87,879.85 |
| Sichuan Changhong Group Finance Co., Ltd. | Other enterprises controlled by the same controlling shareholder and ultimate controller | Other financial services - note discounting | 300,000.00 | 40,984.06 |
| Sichuan Changhong Group Finance Co., Ltd. | Other enterprises controlled by the same controlling shareholder and ultimate controller | Other financial services - note discounting | 100,000.00 | 97.72 |
Note 1: The Company's subsidiary, Zhongke Meiling, is a listed company on the Beijing Stock Exchange, and itsdealings with financial companies with related relationships are detailed in the "2024 Annual Report" of ZhongkeMeiling.
Note 2: As of December 31,2024, registered capital of Changhong Finance Company is 2,693,938,365.84 yuan.The Company and Changhong Huayi holds 14.96% equity of Chonghong Finance Company respectively, andcontrolling shareholder of the Company -Sichuan Changhong Electric Co., Ltd and its controlling shareholderSichuan Changhong Electronics Holding Group Co., Ltd holds 35.04% equity of Changhong Finance Companyrespectively.Note 3: After deliberated and approved by the 35th session of 9
th BOD and 2
thextraordinary shareholders generalmeeting of 2020 held on 16 October 2023 and 3 November , it is agreed to continue the financial servicescooperation between the Company and Changhong Finance Company and renew the “Financial ServiceAgreement” for a period of three years. Changhong Finance Company will provides a series of financial servicessuch as deposit and loans within scope of operation according to the requirements of Company and itssubsidiaries(Excluding Zhongke Meiling and its subsidiaries).(vi) Transactions between the finance company controlled by the Company and related parties
□ Applicable √ Not applicable
No such cases in the reporting period.(vii) Other related party transactions
√ Applicable □ Not applicable
1.On March 28,2024 and April 25, 2024, it was reviewed and approved by the 42nd meeting of the Tenth
Board of Directors and the 30th meeting of the Tenth Board of Supervisors, and it was agreed that the amount ofdaily related transactions between the Company and its subsidiaries and Changhong Group and its subsidiaries onpurchase of commodities and raw materials in 2024 should not exceed RMB 1,138. million (excluding tax);Afterthis increase estimation, the Company and its subsidiaries expect that the total amount of daily related-partytransactions with Changhong Group, such as in purchasing goods, accepting labor services and renting, will notexceed RMB 2,938 million (excluding tax) in 2024.
2. On August 15, 2024, after deliberation and approval at the second meeting of the 11th board of directors
and the second meeting of the 11th board of supervisors of the Company, it’s agreed that the Company willincrease the amount of routine related party transactions such as financial leasing, commercial factoring and billfinancing between the Company and its subsidiaries and Yuanxin Financial Leasing Co., Ltd. in 2024 notexceeding 290 million yuan (excluding tax). After the increase, the amount of routine related party transactionssuch as financial leasing, commercial factoring and bill financing between the Company and its subsidiaries andYuanxin Financial Leasing Co., Ltd. in 2024 is expected to not exceed RMB 10.9 billion (excluding tax).
3. On October 11, 2024 and October 29, 2024, after deliberated and approved in the third meeting of the 11thboard of directors, the third meeting of the 11th board of supervisors, and the second extraordinary generalmeeting of shareholders in 2024, it’s agreed that the Company will increase the amount of routine related partytransactions such as accepting or providing services, labor services, financial leasing, commercial factoring andbill financing between the Company and its subsidiaries and Sichuan Changhong and its subsidiaries in 2024notexceeding 1,025,000,000 yuan (excluding tax). Among them, it’s expected that in 2024, the amount of routinerelated party transactions between the Company and its subsidiaries and Sichuan Changhong and its subsidiariessuch as accepting or providing services and labor services will not exceed RMB 25 million (excluding tax); It’sexpected that in 2024, the amount of routine related party transactions such as financial leasing, commercialfactoring and bill financing between the Company and its subsidiaries and Yuanxin Financial Leasing Co., Ltd., awholly-owned subsidiary of Sichuan Changhong, will not exceed 10 billion yuan (excluding tax). After thisincrease, the Company and its subsidiaries are expected to conduct a total of no more thanRMB16,975,000,000(excluding tax) in total routinerelated party transactions with Sichuan Changhong and itssubsidiaries (excluding Changhong Huayi Compressor Co., Ltd.) in 2024.
4. On November 4, 2024, after the deliberation and approval of the fifth meeting of the 11th board of
directors and the fifth meeting of the 11th board of supervisors of the Company, it’s agreed to extend the durationof Sichuan Hongyun New Generation Information Technology Venture Capital Fund Partnership (LimitedPartnership) for 1 year (the specific expiration date is subject to industrial and commercial registration)(hereinafter referred to as "Hongyun Fund Phase I"), that is, the cumulative duration of the fund after thisextension is 10 years, and it’s agreed that the Company and other partners will sign the " Amendment to thePartnership Agreement of Sichuan Hongyun New Generation Information Technology Venture Capital FundPartnership (Limited Partnership).
5. On December 11 and December 27, 2024, after deliberated and approved in the eighth meeting of the 11thboard of directors, the sixth meeting of the 11th board of supervisors and the third extraordinary general meeting
of shareholders in 2024, it’s agreed that the total amount of routine related party transactions between theCompany and its holding subsidiaries and related parties shall not exceed 26,168,200,000 yuan (excluding tax);It’s agreed that in 2025, the Company and Sichuan Changhong Group Finance Co., Ltd. will continue to carry outfinancial services related transactions such as deposits and loans.Related searches for disclosure website of interim report with major related transaction concerned
| Interim report | Disclosure date | Website for disclosure |
| Resolution Notice of the 42ndsession of 10thBOD (2024-007) Resolution Notice of the 30thsession of 10thBOS (2024-008) Announcement on Increasing the Daily Related Party Transactions in 2024（2024-014） Announcement of the Resolution of the general meeting of 2023 (2024-024) | March 30,2024, April 26,2024 | Juchao Website www.cninfo.com.cn |
| Resolution Notice of the 2ndsession of 11thBOD (2024-041) Resolution Notice of the 2nd session of 11thBOS (2024-042) Announcement on Increasing the Daily Related Party Transactions in 2024（2024-044） | August 17,2024 | Juchao Website www.cninfo.com.cn |
| Resolution Notice of the 3rdsession of 11thBOD (2024-046) Resolution Notice of the 3rd session of 11thBOS (2024-047) Announcement on Increasing the Daily Related Party Transactions in 2024（2024-049） Announcement of the Resolution of the Second Extraordinary general meeting of 2024 (2024-060) | October 11,2024 | Juchao Website www.cninfo.com.cn |
| Resolution Notice of the 5thsession of 11thBOD (2024-061) Resolution Notice of the 5th session of 11thBOS (2024-0462) Announcement on Extension and Related Transactions of Sichuan Hongyun New Generation Information Technology Venture Capital Fund Partnership Enterprise (Limited Partnership). (2024-063) | November 5,2024 | Juchao Website www.cninfo.com.cn |
| Resolution Notice of the 6thsession of 11thBOD (2024-067) Resolution Notice of the 6th session of 11thBOS (2024-068) Announcement on Increasing the Daily Related Party Transactions in 2025（2024-069） Announcement on the expected continued related party transactions with Sichuan Changhong Group Finance Co., Ltd. in 2025（2024-070） Announcement of the Resolution of the Third Extraordinary general meeting of 2024 (2024-076) | December 12,2024,December 28, 2024 | Juchao Website www.cninfo.com.cn |
XV. Significant contract and implementations(i) Entrust, contract and leasing
1. Entrust
□Applicable √ Not applicable
No entrust in Period.
2. Contract
□Applicable √ Not applicable
No contract in Period.
3. Leasing
√Applicable □Not applicable
NoteFor the operational leasing of the company, please refer to "investment real estate", "fixed assets", "use assets","use assets", "related party lease" and "related party lease" in the notes to the financial statements.Project which generates profit or loss reaching over 10% of total profits of the Company during the ReportingPeriod
□ Applicable √ Not applicable
There were no leases with a 10% or greater impact on the Company’s gross profit in the Reporting Period.
(ii) Major guarantee
√ Applicable □ Not applicable
In RMB 10,000
| Particulars about the external guarantee of the Company and subsidiaries (Barring the guarantee for subsidiaries) | ||||||||||
| Name of the Company guaranteed | Related Announcement disclosure date | Guarantee limit | Actual date of happening | Actual guarantee limit | Guarantee type | Collateral (if applicable) | Counter guarantee (if applicable) | Guarantee term | Complete implementation or not | Guarantee for related party |
| - | - | - | - | - | - | - | - | - | - | - |
| Total approving external guarantee in report period (A1) | 0 | Total actual occurred external guarantee in report period (A2) | 0 | |||||||
| Total approved external guarantee at the end of report period ( A3) | 0 | Total actual balance of external guarantee at the end of report period (A4) | 0 | |||||||
| Guarantee between the Company and the subsidiaries | ||||||||||
| Name of the Company guaranteed | Related Announcement disclosure date | Guarantee limit | Actual date of happening | Actual guarantee limit | Guarantee type | Collateral (if applicable) | Counter guarantee (if applicable) | Guarantee term | Complete implementation or not | Guarantee for related party |
| Zhongshan Changhong Electric Co., Ltd. | Announcement No.: 2021-091,2021-092,2021-096,2021-109 released on December 7,2021 and December 24, 2021 | 140,000.00 | October 11,2022 | 15,000.00 | Joint liability guaranty | Yes | 1 year | Yes | No | |
| Announcement No.: 2022-087,2022-088, 2022-091 and 2022-100 released on December 7,2022 and December 23,2022 | 150,000.00 | April 7,2023 | 6,000.00 | Joint liability guaranty | Yes | 1 year | Yes | No | ||
| April 24,2023 | 10,000.00 | Joint liability guaranty | Yes | 1 year | Yes | No | ||||
| June 8,2023 | 10,000.00 | Joint liability guaranty | Yes | 1 year | Yes | No | ||||
| June 27,2023 | 7,000.00 | Joint liability guaranty | Yes | 1 year | Yes | No | ||||
| June 4, 2023 | 10,000.00 | Joint liability guaranty | Yes | 1 year | Yes | No | ||||
| July 10,2023 | 20,000.00 | Joint liability guaranty | Yes | 1 year | Yes | No | ||||
| July 28,2023 | 5,000.00 | Joint liability guaranty | Yes | 1 year | Yes | No | ||||
| August 29,2023 | 15,000.00 | Joint liability guaranty | Yes | 1 year | Yes | No | ||||
| November 2,2023 | 5,000.00 | Joint liability guaranty | Yes | 1 year | Yes | No | ||||
| Announcement No.: 2023-066,2023-067,2023-070,2023-080 released on December 5,2023 and December 22, 2023 | 130,000.00 | - | - | - | - | - | - | - | ||
| Changhong Meiling Ridian Technology Co., Ltd. | Announcement No.: 2021-091,2021-092,2021-096,2021-109 released on December 7, 2021, December 24,2021,December 24,2021 | 16,000.00 | December 8,20222 | 3,500.00 | Joint liability guaranty | Yes | 11.2 months | Yes | No | |
| Announcement No.: 2022-087,2022-088,2022-091,2022-100 released on December 7,2022 December 23, 2022 | 16,000.00 | July 10,2023 | 4,000.00 | Joint liability guaranty | Yes | 1 year | Yes | No | ||
| Announcement No.: 2023-066,2023-067,2023-07, 2023-080 released on December 5,2023, December 22, 2023 | 14,500.00 | March 19,2024 | 3,500.00 | Joint liability guaranty | Yes | 10.7 months | No | No | ||
| Zhongke Meiling Cryogenic Technology Co., Ltd. | Announcement No.: 2023-066,2023-067,2023-070,2023-80 released on December 5, 2023, December 22, 2023 | 10,000.00 | - | - | - | - | - | - | - | |
| Sichuan Changhong Air-conditioner Co., Ltd. | Announcement No.: 2022-087,2022-088,2022-091,2022-100 released on December 7, 2022, December 23, 2022 | 250,000.00 | January 17,2023 | 10,000.00 | Joint liability guaranty | Yes | 9 months | Yes | No | |
| January 17,2023 | 5,000.00 | Joint liability guaranty | Yes | 1 year | Yes | No | ||||
| February 27,2023 | 16,000.00 | Joint liability guaranty | Yes | 1 year | Yes | No | ||||
| March 16,2023 | 30,000.00 | Joint liability | Yes | 1 year | Yes | No |
| guaranty | ||||||||||
| March 24,2023 | 60,000.00 | Joint liability guaranty | Yes | 1 year | Yes | No | ||||
| April 14,2023 | 12,000.00 | Joint liability guaranty | Yes | 1 year | Yes | No | ||||
| July 5,2023 | 1,500.00 | Joint liability guaranty | Yes | 5.4 months | Yes | No | ||||
| Announcement No.: 2023-066,2023-067,2023-070,2023-080 released on December 5,2023, December 22, 2023 | 262,000.00 | - | - | - | - | - | - | - | ||
| Announcement No.: 2024-020,2024-021,2024-023,2024-036 released on April 20, 2024, June 19,2024 | 60,000.00 | September 27,2024 | 60,000.00 | Joint liability guaranty | Yes | 6.4 months | No | No | ||
| Announcement No.: 2024-067,2024-068,2024-071,2024-076 released on December 12, 2024, December 28,2024 | 61,800.00 | - | - | - | - | - | - | - | ||
| Jiangxi Meiling Electric Appliance Co., Ltd. | Announcement No.: 2023-066,2023-067,2023-070,2023-080 released on December 5, 2023, December 22, 2023 | 15,000.00 | - | - | - | - | - | - | - | |
| Announcement No.: 2024-067,2024-068,2024-071,2024-076 released on December 12, 2024, December 28, 2024 | 10,000.00 | - | - | - | - | - | - | - | ||
| Hefei Meiling Nonferrous Metal Products Co., Ltd. | Announcement No.: 2023-066,2023-067,2023-070,2023-080 released on December 5, 2023, December 22, | 3,000.00 | - | - | - | - | - | - | - |
| 2023 | ||||||||||
| Hefei Meiling Group Holdings Limited | Announcement No.: 2022-087,2022-088,2022-091,2022-100 released on December 7, 2022, December 23, 2022 | 60,000.00 | May 11,2023 | 4,500.00 | Joint liability guaranty | Yes | 1 year | Yes | No | |
| July 12,2023 | 8,000.00 | Joint liability guaranty | Yes | 1 year | Yes | No | ||||
| Announcement No.: 2023-066,2023-067,2023-070,2023-080 released on December 5, 2023, December 22, 2023 | 25,000.00 | November 6,2024 | 20,000.00 | Joint liability guaranty | Yes | 1 year | No | No | ||
| Announcement No.: 2023-066,2023-067,2023-070,2023-080 released on December 5, 2023, December 22, 2023。 | 70,000.00 | |||||||||
| Hefei Changhong Meiling Life Appliances Co., Ltd. | Announcement No.: 2021-091,2021-092,2021-096 and 2021-109 released on December 7, 2021 and December 24, 2021 | 35,000.00 | November 21,2022 | 5,000.00 | Joint liability guaranty | Yes | 1 year | Yes | No | |
| Announcement No.: 2022-087,2022-088,2022-091 and 2022-100 released on December 7, 2022 and December 23, 2022 | 35,000.00 | March 22,2023 | 8,000.00 | Joint liability guaranty | Yes | 11 months | Yes | No | ||
| April 24,2023 | 2,000.00 | Joint liability guaranty | Yes | 1 year | Yes | No | ||||
| May 4,2023 | 5,000.00 | Joint liability guaranty | Yes | 1 year | Yes | No | ||||
| October 19,2023 | 2,000.00 | Joint liability guaranty | Yes | 1 year | Yes | No | ||||
| December 1,2023 | 10,000.00 | Joint liability guaranty | Yes | 1 year | Yes | No | ||||
| December 15,2023 | 4,000.00 | Joint liability guaranty | Yes | 5.7 months | Yes | No |
| Announcement No.: 2023-040，2023-041，2023-043，2023-065 released on August 18, 2023, November 4, 2023。 | 8,000.00 | - | - | - | - | - | - | - | ||
| Announcement No.: 2023-066,2023-067,2023-070,2023-080 released on December 5, 2023, December 22, 2023 | 50,000.00 | March 6,2024 | 5,000.00 | Joint liability guaranty | Yes | 8.4 months | Yes | No | ||
| March 26,2024 | 8,000.00 | Joint liability guaranty | Yes | 1 year | No | No | ||||
| Announcement No.: 2023-066,2023-067,2023-070,2023-080 released on December 5, 2024, December 22, 2024 | 20,000.00 | - | - | - | - | - | - | - | ||
| Hefei Changhong Industrial Co., Ltd. | Announcement No.: 2023-066,2023-067,2023-070,2023-080 released on December 5, 2024, December 22, 2024 | 40,000.00 | - | - | - | - | - | - | - | |
| Total amount of approving guarantee for subsidiaries in report period (B1) | 261,800.00 | Total amount of actual occurred guarantee for subsidiaries in report period (B2) | 390,000.00 | |||||||
| Total amount of approved guarantee for subsidiaries at the end of reporting period (B3) | 386,300.00 | Total balance of actual guarantee for subsidiaries at the end of reporting period (B4) | 101,500.00 | |||||||
| Guarantee of the subsidiaries for the subsidiaries | ||||||||||
| Name of the Company guaranteed | Related Announcement disclosure date | Guarantee limit | Actual date of happening | Actual guarantee limit | Guarantee type | Collateral (if applicable) | Counter guarantee (if applicable) | Guarantee term | Complete implementation or not | Guarantee for related party |
| Anhui Touxing Technology Co., Ltd. | Announcement No.: 2022-087,2022-088,2022-091 and 2022-100 released on December 7, 2022 and December | 8,000.00 | June 20,2023 | 1,000.00 | Joint liability guaranty | 1 year | Yes | No | ||
| August 15,2023 | 400.00 | Joint liability guaranty | 1 year | No | No | |||||
| 23, 2022 | October 25,2023 | 1,000.00 | Joint liability guaranty | 1 year | Yes | No | ||||
| Announcement No.: 2023-066,2023-067,2023-070,2023-080 released on December 5, 2023, December 22, 2023 | 5,000.00 | July 24,2024 | 1,000.00 | Joint liability guaranty | 11.5 months | No | No | |||
| Announcement No.: 2023-066,2023-067,2023-070,2023-080 released on December 5, 2024, December 22, 2024 | 3,000.00 | - | - | - | - | - | - | - | ||
| Anhui Ling'an Medical Equipment Co., Ltd | Announcement No.: 2022-087,2022-088,2022-091 and 2022-100 released on December 7, 2022 and December 23, 2022 | 12,000.00 | August 25,2023 | 1,000.00 | Joint liability guaranty | 1 year | Yes | No | ||
| October 20,2023 | 1,000.00 | Joint liability guaranty | 1 year | Yes | No | |||||
| Announcement No.: 2023-066,2023-067,2023-070,2023-080 released on December 5, 2023, December 22, 2023 | 10,000.00 | October 31,2024 | 1,000.00 | Joint liability guaranty | 1 year | No | No | |||
| Announcement No.: 2023-066,2023-067,2023-070,2023-080 released on December 5, 2024, December 22, 2024 | 5,000.00 | - | - | - | - | - | - | - | ||
| Ground Energy Heat Pump Tech.(Zhongshan) Co., Ltd. | Announcement No.: 2023-066,2023-067,2023-070,2023-080 released on December 5, 2024, December 22, 2024 | 56,500.00 | - | - | - | - | - | - | - | |
| Total amount of approving guarantee for subsidiaries in report period (C1) | 64,500.00 | Total amount of actual occurred guarantee for subsidiaries in report period (C2) | 6,400.00 | |||||||
| Total amount of approved guarantee for subsidiaries at the end of reporting period (C3) | 87,500.00 | Total balance of actual guarantee for subsidiaries at the end of reporting period (C4) | 2,400.00 | |
| Total amount of guarantee of the Company (total of three abovementioned guarantee) | ||||
| Total amount of approving guarantee in report period (A1+B1+C1) | 326,300.00 | Total amount of actual occurred guarantee in report period (A2+B2+C2) | 396,400.00 | |
| Total amount of approved guarantee at the end of report period (A3+B3+C3) | 473,800.00 | Total balance of actual guarantee at the end of report period (A4+B4+C4) | 103,900.00 | |
| Ratio of actual guarantee (A4+B4+C4) in net assets of the Company | 17.07% | |||
| Including: | ||||
| Amount of guarantee for shareholders, actual controller and its related parties (D) | 0 | |||
| The debts guarantee amount provided for the guaranteed parties whose assets-liability ratio exceed 70% directly or indirectly (E) | 78,000 | |||
| Proportion of total amount of guarantee in net assets of the Company exceed 50% (F) | 0 | |||
| Total amount of the aforesaid three guarantees (D+E+F) | 78,000 | |||
| Explanations on possibly bearing joint and several liquidating responsibilities for undue guarantees (if applicable) | N/A | |||
| Explanations on external guarantee against regulated procedures (if applicable) | N/A | |||
The above-mentioned guarantee objects are the wholly-owned and holding subsidiaries of the Company, and these wholly-owned and holding subsidiaries are innormal production and operation, there are no overdue loans, and the guarantee risks are controllable. During the reporting period, there were no external guaranteesfor the Company and its subsidiaries, but there were guarantees from the Company to its subsidiaries, or from such subsidiaries to their subsidiaries.By the end of the reporting period, the total approved amount of the Company's guarantee provided to its subsidiaries and the guarantee provided by such subsidiaries totheir subsidiaries was RMB 4,738 million, the actual amount was RMB 3,964 million, and the actual guarantee balance was RMB 1,039 million, accounting for 17.07%of the Company's latest net assets.
Explanation on guarantee with composite way: Not applicable
(iii) Entrust others to cash asset management
1. Trust financing
√ Applicable □ Not applicable
Trust financing in the period
In RMB 10,000
| Type | Capital resources | Amount for entrust | Undue balance | Overdue amount | Impairment amount for overdue financial management |
| Bank financing products | Own idle funds | 1,215,000.00 | 0 | 0 | 0 |
| Total | 1,215,000.00 | 0 | 0 | 0 | |
Details of the single major amount, or high-risk trust investment with low security, poor fluidity
√ Applicable □ Not applicable
In RMB 10,000
| Trustee institution (or name of trustee) | Trustee type | Product type | Amount | Source of funds | Start date | Expiry date | Capital investment purpose | Criteria for fixing reward | Reference annual rate of return | Anticipated income (if applicable) | Actual gains/losses in period | Actual collected gains/losses in period | Amount of reserve for devaluation of withdrawing (if applicable) | Whether approved by legal procedure (Y/N) | Whether has entrust finance plan in the future | Summary of the items and related query index (if applicable) |
| China Everbright Bank Co., Ltd., Hefei Branch | Bank | Principal-guaranteed with floating income | 30,000.00 | Idle own funds | January 16,2024 | April16,2024 | This product is a RMB structured deposit product with embedded financial derivatives. Banks invest the raised structured deposit funds in bank time deposits, and at the same time invest in financial derivative transactions (including but not limited to derivative transactions such as options and swaps) in domestic or international financial markets within the upper limit of the income of such time deposits. The sum of the investment gains and losses of financial derivative transactions and the interest of bank deposits jointly constitutes the income of structured deposit products. | Agreement | 2.60% | Not applicable | 195.00 | 195.00 | N/A | Yes | Not applicable | Juchao Website (www.cninfo.com.cn)(2024-001) |
| China Everbright Bank Co., Ltd., Hefei Branch | Bank | Principal-guaranteed with floating income | 5,000.00 | Idle own funds | January 18,,2024 | April18,2024 | This product is a RMB structured deposit product with embedded financial derivatives. Banks invest the raised structured deposit funds in bank time deposits, and at the same time invest in financial derivative transactions (including but not limited to derivative transactions such as options and swaps) in domestic or international financial markets within the upper limit of the income of such time deposits. The sum of the investment gains and losses of financial derivative transactions and the interest of bank deposits jointly constitutes the income of structured deposit products. | Agreement | 2.60% | Not applicable | 32.50 | 32.50 | N/A | Yes | Not applicable | Juchao Website（www.cninfo.com.cn)(2024-002) |
| Zhongshan branch of Bank of Communications Co., Ltd | Bank | Principal-guaranteed with floating income | 3,000.00 | Idle own funds | March29,2024 | May 31,2024 | Bank of Communications operates the funds raised by structured deposit products in a unified manner and manages them in accordance with the principle of separating basic deposits from derivative transactions. The raised principal will be included in the internal fund of Bank of Communications for unified operation and management, and will be included in the payment scope of deposit reserve fund and deposit insurance. The embedded derivative part of products will be linked to the exchange rate, interest rate, commodity and index, etc | Agreement | 2.35% | Not applicable | 12.17 | 12.17 | N/A | Yes | Not applicable | Juchao Website (www.cninfo.com.cn) (2024-017） |
| Industrial Bank Co., Ltd., Hefei Branch | Bank | Principal-guaranteed with floating income | 15,000.00 | Idle own funds | May 27,2024 | August 27,2024 | This deposit product is a RMB capital-guaranteed non-fixed income product, and the product income is divided into two parts: fixed income and non-fixed income, in which the non-fixed income is associated with the fluctuation of the observed target. | Agreement | 2.65% | Not applicable | 100.19 | 100.19 | N/A | Yes | Not applicable | - |
| Industrial Bank Co., Ltd., Hefei Branch | Bank | Principal-guaranteed with floating income | 5,000.00 | Idle own funds | May 27,2024 | August 28,2024 | This deposit product is a RMB capital-guaranteed non-fixed income product, and the product income is divided into two parts: fixed income and non-fixed income, in which the non-fixed income is associated with the fluctuation of the observed target. | Agreement | 2.65% | Not applicable | 33.40 | 33.40 | N/A | Yes | Not applicable | - |
| Bank of Hangzhou Co., Ltd. Hefei Branch | Bank | Principal-guaranteed with floating income | 12,000.00 | Idle own funds | May 29,2024 | November 25,2024 | The principal of this product is invested in bank deposits and derivative financial instruments. Derivative financial instruments include but are not limited to credit goods, foreign exchange, interest rate options and other derivative financial instruments. | Agreement | 2.82% | Not applicable | 166.88 | 166.88 | N/A | Yes | Not applicable | - |
| Bank of China | Bank | Principal-guaranteed with floating | 15,000.00 | Idle own funds | May 30,2024 | August 30,2024 | This deposit product is a RMB capital-guaranteed non-fixed income product, and the product income is divided into two parts: fixed | Agreement | 1.20% | Not applicable | 45.37 | 45.37 | N/A | Yes | Not applicable | - |
| income | income and non-fixed income, in which the non-fixed income is associated with the fluctuation of the observed target. | |||||||||||||||
| Dongguan Bank Co., Ltd. Hefei Branch | Bank | Principal-guaranteed with floating income | 13,000.00 | Idle own funds | May 30,2024 | November 28,2024 | The principal part of structured deposits is included in the in-statement accounting, and it is included in the scope of deposit reserve and deposit insurance premium payment according to the deposit management. The relevant assets are accrued with capital and provisions according to the relevant regulations of the State Council's Banking Regulatory Authority; The final actual income of structured deposits depends on the market performance of the linked target and is influenced by many factors in the market. | Agreement | 2.95% | Not applicable | 191.22 | 191.22 | N/A | Yes | Not applicable | - |
| Dongguan Bank Co., Ltd. Hefei Branch | Bank | Principal-guaranteed with floating income | 3,000.00 | Idle own funds | May 31,2024 | November 29,2024 | The principal part of structured deposits is included in the in-statement accounting, and it is included in the scope of deposit reserve and deposit insurance premium payment according to the deposit management. The relevant assets are accrued with capital and provisions according to the relevant regulations of the State Council's Banking Regulatory Authority; The final actual income of structured deposits depends on the market performance of the linked target and is influenced by many factors in the market. | Agreement | 2.95% | Not applicable | 44.13 | 44.13 | N/A | Yes | Not applicable | - |
| Bank of Hangzhou Co., Ltd. Hefei Branch | Bank | Principal-guaranteed with floating income | 20,000.00 | Idle own funds | June 3,2024 | June 30,2024 | The principal of this product is invested in bank deposits and derivative financial instruments. Derivative financial instruments include but are not limited to credit goods, foreign exchange, interest rate options and other derivative financial instruments. | Agreement | 2.90% | Not applicable | 42.90 | 42.90 | N/A | Yes | Not applicable | - |
| Bank of Hangzhou Co., Ltd. | Bank | Principal-guaranteed with | 5,000.00 | Idle own funds | June 5,2024 | June 29,2024 | The principal of this product is invested in bank deposits and derivative financial instruments. | Agreement | 2.60% | Not applicab | 8.19 | 8.19 | N/A | Yes | Not applicable | - |
| Hefei Branch | floating income | Derivative financial instruments include but are not limited to credit goods, foreign exchange, interest rate options and other derivative financial instruments. | le | |||||||||||||
| Bank of Hangzhou Co., Ltd. Hefei Branch | Bank | Principal-guaranteed with floating income | 27,000.00 | Idle own funds | June 5,2024 | June 28,2024 | The principal of this product is invested in bank deposits and derivative financial instruments. Derivative financial instruments include but are not limited to credit goods, foreign exchange, interest rate options and other derivative financial instruments. | Agreement | 2.90% | Not applicable | 49.34 | 49.34 | N/A | Yes | Not applicable | - |
| Bank of Hangzhou Co., Ltd. Hefei Branch | Bank | Principal-guaranteed with floating income | 10,000.00 | Idle own funds | June 6,2024 | June 28,2024 | The principal of this product is invested in bank deposits and derivative financial instruments. Derivative financial instruments include but are not limited to credit goods, foreign exchange, interest rate options and other derivative financial instruments. | Agreement | 2.90% | Not applicable | 17.48 | 17.48 | N/A | Yes | Not applicable | - |
| China Everbright Bank Co., Ltd., Hefei Branch | Bank | Principal-guaranteed with floating income | 20,000.00 | Idle own funds | June 26,2024 | September 26,2024 | This product is a RMB structured deposit product with embedded financial derivatives. Banks invest the raised structured deposit funds in bank time deposits, and at the same time invest in financial derivative transactions (including but not limited to derivative transactions such as options and swaps) in domestic or international financial markets within the upper limit of the income of such time deposits. The sum of the investment gains and losses of financial derivative transactions and the interest of bank deposits jointly constitutes the income of structured deposit products. | Agreement | 2.35% | Not applicable | 117.50 | 117.50 | N/A | Yes | Not applicable | - |
| China Everbright Bank Co., Ltd., Hefei Branch | Bank | Principal-guaranteed with floating income | 10,000.00 | Idle own funds | July 2,2024 | September 27,2024 | This product is a RMB structured deposit product with embedded financial derivatives. Banks invest the raised structured deposit funds in bank time deposits, and at the same time invest in financial derivative transactions (including but not limited to derivative transactions such as options and swaps) | Agreement | 2.30% | Not applicable | 54.31 | 54.31 | N/A | Yes | Not applicable | - |
| in domestic or international financial markets within the upper limit of the income of such time deposits. The sum of the investment gains and losses of financial derivative transactions and the interest of bank deposits jointly constitutes the income of structured deposit products. | ||||||||||||||||
| Bank of Hangzhou Co., Ltd. Hefei Branch | Bank | Principal-guaranteed with floating income | 5,000.00 | Idle own funds | July 3,2024 | July 31,2024 | The principal of this product is invested in bank deposits and derivative financial instruments. Derivative financial instruments include but are not limited to credit goods, foreign exchange, interest rate options and other derivative financial instruments. | Agreement | 2.60% | Not applicable | 9.97 | 9.97 | N/A | Yes | Not applicable | - |
| Bank of Hangzhou Co., Ltd. Hefei Branch | Bank | Principal-guaranteed with floating income | 35,000.00 | Idle own funds | July 4,2024 | July 24,2024 | The principal of this product is invested in bank deposits and derivative financial instruments. Derivative financial instruments include but are not limited to credit goods, foreign exchange, interest rate options and other derivative financial instruments. | Agreement | 2.90% | Not applicable | 55.62 | 55.62 | N/A | Yes | Not applicable | - |
| Bank of Hangzhou Co., Ltd. Hefei Branch | Bank | Principal-guaranteed with floating income | 50,000.00 | Idle own funds | July 4,2024 | July 29, | The principal of this product is invested in bank deposits and derivative financial instruments. Derivative financial instruments include but are not limited to credit goods, foreign exchange, interest rate options and other derivative financial instruments. | Agreement | 2.90% | Not applicable | 99.32 | 99.32 | N/A | Yes | Not applicable | - |
| Bank of Hangzhou Co., Ltd. Hefei Branch | Bank | Principal-guaranteed with floating income | 45,000.00 | Idle own funds | July 4,2024 | July 30,2024 | The principal of this product is invested in bank deposits and derivative financial instruments. Derivative financial instruments include but are not limited to credit goods, foreign exchange, interest rate options and other derivative financial instruments. | Agreement | 2.90% | Not applicable | 92.96 | 92.96 | N/A | Yes | Not applicable | - |
| Bank of Hangzhou Co., Ltd. Hefei Branch | Bank | Principal-guaranteed with floating | 10,000.00 | Idle own funds | July 4,2024 | July 31,2024 | The principal of this product is invested in bank deposits and derivative financial instruments. Derivative financial instruments include but are not | Agreement | 2.90% | Not applicable | 21.45 | 21.45 | N/A | Yes | Not applicable | - |
| income | limited to credit goods, foreign exchange, interest rate options and other derivative financial instruments. | |||||||||||||||
| Bank of Hangzhou Co., Ltd. Hefei Branch | Bank | Principal-guaranteed with floating income | 55,000.00 | Idle own funds | August 5,2024 | August 28,2024 | The principal of this product is invested in bank deposits and derivative financial instruments. Derivative financial instruments include but are not limited to credit goods, foreign exchange, interest rate options and other derivative financial instruments. | Agreement | 2.80% | Not applicable | 97.04 | 97.04 | N/A | Yes | Not applicable | - |
| Bank of Hangzhou Co., Ltd. Hefei Branch | Bank | Principal-guaranteed with floating income | 75,000.00 | Idle own funds | August 5,2024 | August 29,2024 | The principal of this product is invested in bank deposits and derivative financial instruments. Derivative financial instruments include but are not limited to credit goods, foreign exchange, interest rate options and other derivative financial instruments. | Agreement | 2.80% | Not applicable | 138.08 | 138.08 | N/A | Yes | Not applicable | - |
| Bank of Hangzhou Co., Ltd. Hefei Branch | Bank | Principal-guaranteed with floating income | 5,000.00 | Idle own funds | August 5,2024 | August 30,2024 | The principal of this product is invested in bank deposits and derivative financial instruments. Derivative financial instruments include but are not limited to credit goods, foreign exchange, interest rate options and other derivative financial instruments. | Agreement | 2.60% | Not applicable | 8.90 | 8.90 | N/A | Yes | Not applicable | - |
| Bank of Hangzhou Co., Ltd. Hefei Branch | Bank | Principal-guaranteed with floating income | 30,000.00 | Idle own funds | August 19,2024 | August 30,2024 | The principal of this product is invested in bank deposits and derivative financial instruments. Derivative financial instruments include but are not limited to credit goods, foreign exchange, interest rate options and other derivative financial instruments. | Agreement | 2.80% | Not applicable | 25.32 | 25.32 | N/A | Yes | Not applicable | - |
| Bank of Hangzhou Co., Ltd. Hefei Branch | Bank | Principal-guaranteed with floating income | 10,000.00 | Idle own funds | August 19,2024 | November 17,2024 | The principal of this product is invested in bank deposits and derivative financial instruments. Derivative financial instruments include but are not limited to credit goods, foreign exchange, interest rate options and other derivative financial instruments. | Agreement | 2.60% | Not applicable | 64.11 | 64.11 | N/A | Yes | Not applicable | - |
| Bank of Communications Co., Ltd | Bank | Principal-guaranteed with floating income | 5,000.00 | Idle own funds | August 19,2024 | November 18,2024 | The funds raised by the structured deposit products of the Bank of Communications are operated by the Bank of Communications in a unified manner, and the business management is carried out in accordance with the principle of separating the basic deposits from derivative transactions. The part of the principal raised is included in the unified operation and management of the internal funds of Bank of Communications, and is included in the scope of payment of deposit reserves and deposit insurance premiums, and the embedded derivatives part of the product is linked to the exchange rate, interest rate, commodity, index and other underlying objects. The underlying price under this product agreement is the [Shanghai Gold Centralized Pricing Contract (Code: SHAU) Benchmark Price Morning Price], and the final performance of the product income is linked to the morning price of the SHAU benchmark price. | Agreement | 2.45% | Not applicable | 30.54 | 30.54 | N/A | Yes | Not applicable | - |
| Industrial Bank Co., Ltd., Hefei Branch | Bank | Principal-guaranteed with floating income | 10,000.00 | Idle own fund | August 28,2024 | November 28,2024 | The principal of this product is invested in bank deposits and derivative financial instruments. Derivative financial instruments include but are not limited to credit goods, foreign exchange, interest rate options and other derivative financial instruments. | Agreement | 2.25% | Not applicable | 56.71 | 56.71 | N/A | Yes | Not applicable | - |
| ICBC MianyangGaoxin Branch | Bank | Principal-guaranteed with floating income | 10,000.00 | Idle own fund | August 29,2024 | December 2,2024 | The principal of this product is partly incorporated into the unified operation and management of internal funds of ICBC, The earnings are partly invested in derivatives pegged to the euro against the dollar, and the product gains are linked to the performance of the euro against dollar exchange rate in the international market during the observation period. Investor earnings depend on | Agreement | 2.39% | Not applicable | 56.76 | 56.76 | N/A | Yes | Not applicable | - |
| the euro against the dollar during the observation period. In the principle of fairness and justice, ICBC will observe the exchange rate of the euro against the US dollar during the observation period according to the market conditions, and pay the investor for the product in strict accordance with the income conditions stipulated in the product specification. | ||||||||||||||||
| Mianyang branch of SPD Bank | Bank | Principal-guaranteed with floating income | 10,000.00 | Idle own fund | September 2,2024 | September 30,2024 | The structured deposits are included in the payment scope of deposit reserve and deposit insurance premium in accordance with deposit management and regulatory requirements, | Agreement | 2.60% | Not applicable | 20.22 | 20.22 | N/A | Yes | Not applicable | - |
| Bank of Hangzhou Co., Ltd. Hefei Branch | Bank | Principal-guaranteed with floating income | 55,000.00 | Idle own fund | September 4,2024 | September 27,2024 | The principal of this product is invested in bank deposits and derivative financial instruments. Derivative financial instruments include but are not limited to credit goods, foreign exchange, interest rate options and other derivative financial instruments. | Agreement | 2.60% | Not applicable | 90.11 | 90.11 | N/A | Yes | Not applicable | - |
| Bank of Hangzhou Co., Ltd. Hefei Branch | Bank | Principal-guaranteed with floating income | 75,000.00 | Idle own fund | September 4,2024 | September 30,2024 | The principal of this product is invested in bank deposits and derivative financial instruments. Derivative financial instruments include but are not limited to credit goods, foreign exchange, interest rate options and other derivative financial instruments. | Agreement | 2.60% | Not applicable | 138.90 | 138.90 | N/A | Yes | Not applicable | - |
| Bank of Hangzhou Co., Ltd. Hefei Branch | Bank | Principal-guaranteed with floating income | 30,000.00 | Idle own fund | September 5,2024 | September 30,2024 | The principal of this product is invested in bank deposits and derivative financial instruments. Derivative financial instruments include but are not limited to credit goods, foreign exchange, interest rate options and other derivative financial instruments. | Agreement | 2.60% | Not applicable | 53.42 | 53.42 | N/A | Yes | Not applicable | - |
| Hefei Branch of Guangfa Bank | Bank | Principal-guaranteed with floating income | 10,000.00 | Idle own fund | September 27,2024 | December 6,2024 | The principal of this structured deposit is included in the unified operation and management of funds of Guangfa Bank，The returns are partly invested in financial derivatives, and investors' structured | Agreement | 2.46% | Not applicable | 47.18 | 47.18 | N/A | Yes | Not applicable | - |
| deposit returns depend on the performance of spot gold during the observation period. | ||||||||||||||||
| China Everbright Bank Co., Ltd., Hefei Branch | Bank | Principal-guaranteed with floating income | 30,000.00 | Idle own fund | 2024年9月29日 | 2024年12月29日 | This product is a RMB structured deposit product with embedded financial derivatives. Banks invest the raised structured deposit funds in bank time deposits, and at the same time invest in financial derivative transactions (including but not limited to derivative transactions such as options and swaps) in domestic or international financial markets within the upper limit of the income of such time deposits. The sum of the investment gains and losses of financial derivative transactions and the interest of bank deposits jointly constitutes the income of structured deposit products. | Agreement | 2.35% | Not applicable | 176.42 | 176.42 | N/A | Yes | Not applicable | - |
| Dongguan Bank Co., Ltd. Hefei Branch | Bank | Principal-guaranteed with floating income | 2,000.00 | Idle own fund | September 30,2024 | December 30,2024 | The principal part of structured deposits is included in the in-statement accounting, and it is included in the scope of deposit reserve and deposit insurance premium payment according to the deposit management. The relevant assets are accrued with capital and provisions according to the relevant regulations of the State Council's Banking Regulatory Authority; The final actual income of structured deposits depends on the market performance of the linked target and is influenced by many factors in the market. | Agreement | 1.70% | Not applicable | 8.48 | 8.48 | N/A | Yes | Not applicable | - |
| Bank of Hangzhou Co., Ltd. Hefei Branch | Bank | Principal-guaranteed with floating income | 55,000.00 | Idle own fund | October 10,2024 | October 29,2024 | The principal of this product is invested in bank deposits and derivative financial instruments. Derivative financial instruments include but are not limited to credit goods, foreign exchange, interest rate options and other derivative financial instruments. | Agreement | 2.60% | Not applicable | 74.44 | 74.44 | N/A | Yes | Not applicable | - |
| Bank of Hangzhou Co., Ltd. | Bank | Principal-guaranteed with | 90,000.00 | Idle own fund | October 10,2024 | October 31,2024 | The principal of this product is invested in bank deposits and derivative financial instruments. Derivative financial instruments include but are not | Agreement | 2.60% | Not applicab | 134.63 | 134.63 | N/A | Yes | Not applicable | - |
| Hefei Branch | floating income | limited to credit goods, foreign exchange, interest rate options and other derivative financial instruments. | le | |||||||||||||
| Mianyang branch of SPD Bank | Bank | Principal-guaranteed with floating income | 10,000.00 | Idle own fund | October 14,2024 | November 14,2024 | The structured deposits are included in the payment scope of deposit reserve and deposit insurance premium in accordance with deposit management and regulatory requirements, | Agreement | 2.20% | Not applicable | 18.33 | 18.33 | N/A | Yes | Not applicable | - |
| Bank of Hangzhou Co., Ltd. Hefei Branch | Bank | Principal-guaranteed with floating income | 60,000.00 | Idle own fund | November 4,2024 | November 28,2024 | The principal of this product is invested in bank deposits and derivative financial instruments. Derivative financial instruments include but are not limited to credit goods, foreign exchange, interest rate options and other derivative financial instruments. | Agreement | 2.50% | Not applicable | 98.63 | 98.63 | N/A | Yes | Not applicable | - |
| Bank of Hangzhou Co., Ltd. Hefei Branch | Bank | Principal-guaranteed with floating income | 80,000.00 | Idle own fund | November 4,2024 | November 29,2024 | The principal of this product is invested in bank deposits and derivative financial instruments. Derivative financial instruments include but are not limited to credit goods, foreign exchange, interest rate options and other derivative financial instruments. | Agreement | 2.50% | Not applicable | 136.99 | 136.99 | N/A | Yes | Not applicable | - |
| Bank of Communications Co., Ltd | Bank | Principal-guaranteed with floating income | 10,000.00 | Idle own fund | November 20,2024 | December 23,2024 | The structured deposits are included in the payment scope of deposit reserve and deposit insurance premium in accordance with deposit management and regulatory requirements, | Agreement | 2.10% | Not applicable | 18.99 | 18.99 | N/A | Yes | Not applicable | - |
| Mianyang branch of SPD Bank | Bank | Principal-guaranteed with floating income | 10,000.00 | Idle own fund | November 25,2024 | December 25,2024 | The structured deposits are included in the payment scope of deposit reserve and deposit insurance premium in accordance with deposit management and regulatory requirements, | Agreement | 2.00% | Not applicable | 16.67 | 16.67 | N/A | Yes | Not applicable | - |
| Industrial Bank Co., Ltd., Mianyang Branch | Bank | Principal-guaranteed with floating income | 10,000.00 | Idle own fund | December 30,2024 | December 30,2024 | The principal of this product is invested in bank deposits and derivative financial instruments. Derivative financial instruments include but are not limited to credit goods, foreign exchange, interest rate options and other derivative financial instruments. | Agreement | 2.17% | Not applicable | 16.05 | 16.05 | N/A | Yes | Not applicable | - |
| Bank of Hangzhou Co., Ltd. Hefei Branch | Bank | Principal-guaranteed with floating income | 80,000.00 | Idle own fund | December 4,2024 | December 22,2024 | The principal of this product is invested in bank deposits and derivative financial instruments. Derivative financial instruments include but are not limited to credit goods, foreign exchange, interest rate options and other derivative financial instruments. | Agreement | 2.50% | Not applicable | 98.63 | 98.63 | N/A | Yes | Not applicable | - |
| Bank of Hangzhou Co., Ltd. Hefei Branch | Bank | Principal-guaranteed with floating income | 60,000.00 | Idle own fund | December 4,2024 | December 27,2024 | The principal of this product is invested in bank deposits and derivative financial instruments. Derivative financial instruments include but are not limited to credit goods, foreign exchange, interest rate options and other derivative financial instruments. | Agreement | 2.40% | Not applicable | 90.74 | 90.74 | N/A | Yes | Not applicable | - |
| Total | 1,215,000.00 | -- | -- | -- | -- | -- | -- | -- | 3106.19 | -- | -- | -- | -- | -- | ||
Note: Zhongke Meiling, a subsidiary of the Company, is a listed company of the Beijing Stock Exchange. For details of its entrusted financial management, pleaserefer to Zhongke Meiling's 2024 annual Report.Entrust financial expected to be unable to recover the principal or impairment might be occurred
□ Applicable √ Not applicable
Are there any financial products with a single outstanding balance of over 50 million yuan or overdue payments at the end of the reportingperiod.
□ Yes √ No □ Not applicable
2. Entrust loans
□ Applicable √ Not applicable
No entrust loans in the period.(iv) Other material contracts
□ Applicable √ Not applicable
No other material contracts in the period.XVI. Explanation on other significant events
√ Applicable □ Not applicable
1. According to the resolution of the 40th meeting of the 10th Board of Directors of the Company, it was agreed thatthe Company should set up an ESG management organization structure, and an ESG management committee underthe Board of Directors of the Company, consisting of six directors of the Board of Directors, namely Mr. WuDinggang, Mr. Zhong Ming, Mr. Zhao Qilin, Mr. Kou Huameng, Mr. Hu Zhaogui and Ms. Mou Wen (independentdirectors), and the chairman of Mr. Wu Dinggang, which will take effect from the date of review and approval by theBoard of Directors. The term of office of the above members is the same as that of the Board of Directors.Foundmore on appointed media “Securities Times”, “China Securities Journal” and Juchao Website(www.cninfo.com.cn) that the Company disclosed in the form of announcement (Announcement No. 2024-004and 2024-005 )on 20 February 2024.
2. According to the resolution of the 40th meeting of the 10th Board of Directors, it was agreed that theCompany will invest RMB 88 million to transform the front-end refrigerator production line of Hefei manufacturingbase, in order to enhance the refrigerator manufacturing capacity of Hefei base and improve the marketcompetitiveness of products.Found more on appointed media “Securities Times”, “China Securities Journal” andJuchao Website (www.cninfo.com.cn) that the Company disclosed in the form of announcement (AnnouncementNo. 2024-004 )on 20February 2024.
3. According to the resolutions of the 42nd meeting of the 10th Board of Directors, the 30th meeting of the 10thBoard of Supervisors and the 2023 Annual General Meeting of Shareholders, it was agreed to pass the Company's2023 profit distribution plan: based on the Company's total share capital of 1,029,923,715 shares on December 31,2023, it will distribute a cash dividend of RMB 3 (including tax) to all shareholders for every 10 shares, with nobonus shares or share capital increase by reserve fund conversion. It is expected to distribute a cash dividend ofRMB 308,977,114.50 (including tax), accounting for 41.70% of the net profit attributable to shareholders of listedcompanies in 2023. Found more on appointed media “Securities Times”, “China Securities Journal” and JuchaoWebsite (www.cninfo.com.cn) that the Company disclosed in the form of announcement (Announcement No.2024-007,2024-008, 2024-010 and 2024-024)on 30 March 2024 and 26 April 2024..
4. According to the resolution of the 42nd meeting of the 10th Board of Directors and the 2023 Annual GeneralMeeting of Shareholders, it was agreed to appoint Pan-China Certified Public Accountants (special generalpartnership) AS appointed as the auditor of the Company's 2024 annual financial report and internal control for aperiod of one year. Found more on appointed media “Securities Times”, “China Securities Journal” and JuchaoWebsite (www.cninfo.com.cn) that the Company disclosed in the form of announcement (Announcement No.2024-007 ,2024-011 and 2024-024)on 30 March 2024 and 26 April 2024.
5. According to the resolution of the 42nd meeting of the 10th Board of Directors and the 2023 Annual General
Meeting of Shareholders, it was agreed that the Company and its subsidiaries will conduct forward foreign exchangefund trading business from July 1, 2024 to June 30, 2025, with a transaction balance not exceeding USD 1.199billion (mainly including USD, AUD and EUR, and all other foreign exchange will be converted into USD), and alongest delivery period of a single business of no more than one year.Found more on appointed media “SecuritiesTimes”, “China Securities Journal” and Juchao Website (www.cninfo.com.cn) that the Company disclosed in theform of announcement (Announcement No. 2024-007,2024-013 and 2024-024)on 30 March 2024 and 26 April2024..
6. According to the resolutions of the 42nd meeting of the 10th Board of Directors, the 30th meeting of the 10thBoard of Supervisors and the 2023 Annual General Meeting of Shareholders, it was agreed to pass the Company'sReturn Plan for Shareholders for the Next Three Years (2024 -2026).Found more on appointed media “SecuritiesTimes”, “China Securities Journal” and Juchao Website (www.cninfo.com.cn) that the Company disclosed in theform of announcement (Announcement No. 2024-007,2024-008 and 2024-024)on 30 March 2024 and 26 April2024..
7. According to the resolution of the 42nd meeting of the 10th Board of Directors and the 2023 Annual GeneralMeeting of Shareholders, it was agreed that the Company and its subsidiaries apply to Hefei Branch of IndustrialBank Co., Ltd. for a special credit line of up to RMB 400 million for bill pool; and apply to Hefei Branch of Ping AnBank Co., Ltd. for a special credit line of up to RMB 500 million for bill pool.Found more on appointed media“Securities Times”, “China Securities Journal” and Juchao Website (www.cninfo.com.cn) that the Companydisclosed in the form of announcement (Announcement No. 2024-007,2024-015 and 2024-024)on 30 March 2024and 26 April 2024..
8. According to the 43rd meeting of the 10th Board of Directors, the 31st meeting of the 10th Board of Supervisorsand the First Extraordinary General Meeting of Shareholders in 2024, it was agreed to provide a total guaranteeamount of no more than RMB 600 million for raw materials purchased by Changhong Air Conditioning, awholly-owned subsidiary of the Company, with a guarantee period of one year, starting from the date of review andapproval by the Company's General Meeting of Shareholders.Found more on appointed media “Securities Times”,“China Securities Journal” and Juchao Website (www.cninfo.com.cn) that the Company disclosed in the form ofannouncement (Announcement No. 2024-020,2024-021,2024-023 and 2024-036)on 20 April 2024 and 19 June2024..
9. In order to establish a variety of shareholder return mechanisms, thank shareholders for their long-term concernand support, and at the same time to allow shareholders to experience the Company's new products and services, andimprove investors' understanding and recognition of the Company's intrinsic value, the Company held the"Changhong Meiling Shareholder Thanksgiving Festival" from May 18, 2024 to May 26, 2024.Found more onappointed media “Securities Times”, “China Securities Journal” and Juchao Website (www.cninfo.com.cn) thatthe Company disclosed in the form of announcement (Announcement No. 2024-025)on 17 May 2024 .
10. According to the resolutions of the 44th meeting of the 10th Board of Directors and the First ExtraordinaryGeneral Meeting of Shareholders in 2024, it was agreed to amend some clauses of the Company's Articles ofAssociation according to relevant provisions of laws and regulations and combined with the actual situation of the
Company.Found more on appointed media “Securities Times”, “China Securities Journal” and Juchao Website(www.cninfo.com.cn) that the Company disclosed in the form of announcement (Announcement No.2024-026,2024-028 and 2024-036)on 1 June 2024 and 19 June 2024..
11. According to the resolution of the 44th meeting of the 10th Board of Directors and the First ExtraordinaryGeneral Meeting of Shareholders in 2024, it was agreed to amend some clauses of the Company's AuthorizationManagement System according to the relevant provisions of laws and regulations and combined with the actualsituation of the Company.Found more on appointed media “Securities Times”, “China Securities Journal” andJuchao Website (www.cninfo.com.cn) that the Company disclosed in the form of announcement (AnnouncementNo. 2024-026,2024-028 and 2024-036)on 1 June 2024 and 19 June 2024..
12. According to the resolutions of the 44th meeting of the 10th Board of Directors, the 32nd meeting of the 10thBoard of Supervisors and the First Extraordinary General Meeting of Shareholders in 2024, it was agreed that theCompany and its subsidiaries (excluding Zhongke Meiling Cryogenic Technology Co., Ltd. and its subsidiaries)would increase the use of their own idle funds of no more than RMB 1.85 billion (which can be used in a rolling way)to invest in and purchase bank wealth management products with high safety, good liquidity, low risk and stabilitywithin one year. The authorization period is valid within one year from the date of deliberation and approval by theGeneral Meeting of Shareholders of the Company.Found more on appointed media “Securities Times”, “ChinaSecurities Journal” and Juchao Website (www.cninfo.com.cn) that the Company disclosed in the form ofannouncement (Announcement No. 2024-026,2024-027 ,2024-030 and 2024-036)on 1 June 2024 and 19 June2024..
13. In view of the expiration of the term of the 10th Board of Directors of the Company, according to relevantregulations, the Board of Directors of the Company needs to be re-elected. It was agreed that the 11th Board ofDirectors of the Company should have 9 directors, including 6 non-independent directors and 3 independentdirectors. According to the resolutions of the 44th meeting of the 10th Board of Directors and the FirstExtraordinary General Meeting of Shareholders in 2024, it was agreed to appoint Mr. Wu Dinggang, Mr. ZhongMing, Mr. Zhao Qilin, Ms. Yi Suqin, Mr. Cheng Ping and Mr. Fang Wei as the non-independent directors of the 11thBoard of Directors, and Ms. Mou Wen, Mr. Hong Yuanjia and Mr. Cheng Wenlong as the independent directors ofthe 11th Board of Directors.Found more on appointed media “Securities Times”, “China Securities Journal” andJuchao Website (www.cninfo.com.cn) that the Company disclosed in the form of announcement (AnnouncementNo. 2024-026,2024-031 and 2024-036)on 1 June 2024 and 19 June 2024..
14. According to the resolution of the 32nd meeting of the 10th Board of Supervisors and the FirstExtraordinary General Meeting of Shareholders in 2024, in order to optimize the enterprise supervision system,combined with the revision of the Articles of Association, it was agreed to amend some clauses of the Rules ofProcedure of the Board of Supervisors, and adjust the member number of the Board of Supervisors from 5 to
3.Found more on appointed media “Securities Times”, “China Securities Journal” and Juchao Website(www.cninfo.com.cn) that the Company disclosed in the form of announcement (Announcement No.2024-027,2024-029 and 2024-036)on 1 June 2024 and 19 June 2024..
15. In view of the expiration of the term of the 10th Board of Supervisors of the Company, according to
relevant regulations, the Board of Supervisors of the Company needs to be re-elected. It was agreed that the 11thBoard of Supervisors of the Company should have 3 supervisors, including 2 shareholder representative supervisorsand 1 employee supervisor. According to the resolution of the 32nd meeting of the 10th Board of Supervisors andthe First Extraordinary General Meeting of Shareholders in 2024, it was agreed to appoint Mr. Qiu Jin and Mr. MaYu as the shareholder representative supervisors of the 11th Board of Supervisors; After voting at the secondmeeting of the Ninth Workers' Congress, it was agreed to elect Ms. Ji Ge as the employee supervisor of the 11thBoard of Supervisors.Found more on appointed media “Securities Times”, “China Securities Journal” and JuchaoWebsite (www.cninfo.com.cn) that the Company disclosed in the form of announcement (Announcement No.2024-027,2024-032, 2024-036 and 2024-037)on 1 June 2024 and 19 June 2024..
16. According to the resolution of the first meeting of the 11th Board of Directors, it was agreed to elect Mr. WuDinggang as the chairman of the 11th Board of Directors, to elect members of the strategy, audit, nomination,remuneration and assessment and ESG management committees under the 11th Board of Directors, to re-appoint Mr.Tang Youdao, Mr. Kou Huameng and Mr. Hu Zhaogui as the Company's vice presidents, to employ Ms. Li Xia asthe Company's vice president and concurrently the secretary of the Board of Directors, and to re-appoint Mr. PangHaitao as the Company's financial director, with a term of office from the date of review and approval by the Boardof Directors to the Company to the date of expiration of the term of office of the current Board of Directors.Foundmore on appointed media “Securities Times”, “China Securities Journal” and Juchao Website(www.cninfo.com.cn) that the Company disclosed in the form of announcement (Announcement No. 2024-038and 2024-040)on 19 June 2024 and 20 June 2024..
17. According to the resolution of the first meeting of the 11th Board of Supervisors of the Company, it wasagreed to elect Mr. Qiu Jin as the chairman of the 11th Board of Supervisors of the Company, with a term of officethe same as that of the 11th Board of Supervisors of the Company.Found more on appointed media “SecuritiesTimes”, “China Securities Journal” and Juchao Website (www.cninfo.com.cn) that the Company disclosed in theform of announcement (Announcement No. 2024-038 and 2024-040)on 19 June 2024 and 20 June 2024..
18. On August 15, 2024, through the resolution passed at the second meeting of the 11th board of directors of
the Company, according to the Company's production and operation needs, in order to improve the manufacturingcapacity of the Company's refrigerator products, it’s agreed that the Company will use its own funds of 16.35million yuan to carry out technical transformation of some equipment of the refrigerator production line toenhance the production capacity and market competitiveness of the Company's products.Found more on appointedmedia “Securities Times”, “China Securities Journal” and Juchao Website (www.cninfo.com.cn) that the Companydisclosed in the form of announcement (Announcement No. 2024-041on 19 August 17..
19. On October 11, 2024 and October 29, 2024, respectively through the resolution passed at the thirdmeeting of the Company's 11th board of directors, the third meeting of the 11th board of supervisors and thesecond extraordinary general meeting of shareholders in 2024, according to the Company's strategic developmentplan and business needs, in order to meet the Company's needs for high-end refrigerator expansion, self-ownedlogistics warehouse expansion, future home appliance and home integration industrial layout, etc., and solve theproblem of industrial development and resource shortage, it’s agreed that the Company will use its own funds of
RMB 371,282,909.96 to acquire 99% equity of Hefei Changhong Industrial Co., Ltd. (hereinafter referred to as"Hefei Industrial", the company's main assets are land, plants, etc.) held by Sichuan Changhong Electric Co., Ltd.,and agreed Hefei Meiling IoT Technology Co., Ltd.-a wholly-owned subsidiary of the Company-to acquire the 1%equity in Hefei Industrial held by Sichuan Changhong Innovation Investment Co., Ltd. with its own funds ofRMB 3,750,332.42. After this transaction, Hefei Industrial has become a subsidiary of the Company by directlyand indirectly holding 100% of the shares, which will be included in the Company's consolidated financialstatement. Found more on appointed media “Securities Times”, “China Securities Journal” and Juchao Website(www.cninfo.com.cn) that the Company disclosed in the form of announcement (Announcement No. 2024-046and 2024-048)on 12 October 2024..
20. On October 11, 2024 and October 29, 2024, through the resolution passed at the third meeting of the 11thboard of directors of the Company and the second extraordinary general meeting of shareholders in 2024, it’sagreed the Company and its subsidiaries to carry out asset pool business with Hefei Branch of Zheshang Bank Co.,Ltd. with a total quota of no more than RMB 500 million; Approved the Company and its subsidiaries to carry outasset pool business with Hefei Branch of Bohai Bank Co., Ltd. with a total quota of not more than RMB 300million. Found more on appointed media “Securities Times”, “China Securities Journal” and Juchao Website(www.cninfo.com.cn) that the Company disclosed in the form of announcement (Announcement No. 2024-046and 2024-050)on 12 October 2024..
21. On October 11, 2024 and October 29, 2024, through the resolution passed at the third meeting of the 11th
board of directors of the company and the second extraordinary general meeting of shareholders in 2024 it’sagreed the Company and its subsidiaries to apply for a special credit line of up to RMB 500 million for the billpool from Huaxia Bank Co., Ltd. Hefei Branch; Approved the Company and its subsidiaries to apply for a specialcredit line of up to 600 million yuan for the bill pool from Bank of Hangzhou Co., Ltd. Hefei Branch; Approvedthe Company and its subsidiaries to apply for a special credit line of up to RMB 1 billion for the bill pool fromBank of Communications Co., Ltd. Anhui Branch. Found more on appointed media “Securities Times”, “China
Securities Journal” and Juchao Website (www.cninfo.com.cn) that the Company disclosed in the form ofannouncement (Announcement No. 2024-046 )on 12 October 2024..
22. On November 22, 2024, Mr. Zhong Ming, the former president of the Company, resigned from hisposition as President of the Company due to personal reasons, and he will continue to serve as a director of theCompany, a member of the Strategy Committee, a member of the Nomination Committee and a member of theESG Management Committee of the Company. Passed by the resolution of the sixth meeting of the 11th board ofdirectors of the Company, in accordance with "The Company Law", "Articles of Association of the Company" andthe relevant regulations of the China Securities Regulatory Commission and the Shenzhen Stock Exchange, inorder to ensure the smooth progress of the Company's daily operation and management, after review and approvalby the nomination committee under the board of directors, the board of directors agreed to authorize Mr. TangYoudao, vice president of the Company, to act as the president, with the agency period will be from the date of theresolution of the board of directors to the date of appointment of the new president of the board of directors.Found more on appointed media “Securities Times”, “China Securities Journal” and Juchao Website
(www.cninfo.com.cn) that the Company disclosed in the form of announcement (Announcement No. 2024-065and 2024-066)on 12 October 2024..
23. On December 11, 2024 and December 27, 2024, through the resolution passed at the eighth meeting ofthe 11th board of directors, the sixth meeting of the 11th board of supervisors, and the third extraordinary generalmeeting of shareholders in 2024, In order to improve the efficiency of the Company's capital use, increase theCompany's cash asset income, and maximize the interests of shareholders, under the premise of ensuring thecapital needs of daily operation and effectively controlling investment risks, it’s agreed that the Company and itssubsidiaries (excluding Zhongke Meiling Cryogenic Technology Co., Ltd. and its subsidiaries) will use their ownidle funds not exceeding 6.35 billion yuan (the quota can be used on a rolling basis) to invest in bank wealthmanagement products with high security, good liquidity, low risk and stability within one year, and theauthorization period shall be valid for one year from the date of approval by the Company's general meeting ofshareholders. Found more on appointed media “Securities Times”, “China Securities Journal” and Juchao Website
(www.cninfo.com.cn) that the Company disclosed in the form of announcement (Announcement No. 2024-067and 2024-072)on 12 December 2024..XVII. Major event of the subsidiary
√ Applicable □ Not applicable
1. According to the resolution of the 41st meeting of the 10th Board of Directors of the Company, it was agreedthat Sichuan Changhong Air Conditioning Co., Ltd., a subsidiary of the Company, would invest RMB 100 millionwith its own funds to set up a wholly-owned subsidiary, Sichuan Changhong Intelligent Air ConditioningTechnology Co., Ltd., to engage in related business centered on manufacturing and sales of frequency conversiondrive control panels in the air conditioning industry (including special air conditioners).Found more on appointedmedia “Securities Times”, “China Securities Journal” and Juchao Website (www.cninfo.com.cn) that the Companydisclosed in the form of announcement (Announcement No. 2024-006 )on 15 March 2024..
2. According to the resolution of the 42nd meeting of the 10th Board of Directors and the 30th meeting of the10th Board of Supervisors, it was agreed that Hefei Meiling Nonferrous Metal Products Co., Ltd., a subsidiary of theCompany, would write off some unrecoverable accounts receivable totaling RMB 3,092,614.56.Found more onappointed media “Securities Times”, “China Securities Journal” and Juchao Website (www.cninfo.com.cn) thatthe Company disclosed in the form of announcement (Announcement No. 2024-007,2024-008 and 2024-012 )on30 March 2024.
VII .Changes in Shares and Particulars about ShareholdersI. Changes in Share Capital(i) Changes in Share Capital
In Shares
| Before the Change | Increase/Decrease in the Change (+, -) | After the Change | |||||||
| Amount | Proportion | New shares issued | Bonus shares | Public reserve transfer into share capital | Others | Subtotal | Amount | Proportion | |
| I. Restricted shares | 7,688,842 | 0.75% | 0 | 0 | 0 | -1,534,757 | -1,534,757 | 6,154,085 | 0.60% |
| 1. State-owned shares | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
| 2. State-owned legal person’s shares | 1,141,053 | 0.11% | 0 | 0 | 0 | 0 | 0 | 1,141,053 | 0.11% |
| 3. Other domestic shares | 5,280,369 | 0.52% | 0 | 0 | 0 | -267,337 | -267,337 | 5,013,032 | 0.49% |
| Including: Domestic legal person’s shares | 3,363,539 | 0.33% | 0 | 0 | 0 | 0 | 0 | 3,363,539 | 0.33% |
| Domestic natural person’s shares | 1,916,830 | 0.19% | 0 | 0 | 0 | -267,337 | -267,337 | 1,649,493 | 0.16% |
| 4. Foreign shares | 1,267,420 | 0.12% | 0 | 0 | 0 | -1,267,420 | -1,267,420 | 0 | 0.00% |
| Including: Foreign legal person’s shares | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
| Foreign natural person’s shares | 1,267,420 | 0.12% | 0 | 0 | 0 | -1,267,420 | -1,267,420 | 0 | 0.00% |
| II. Unrestricted shares | 1,022,234,873 | 99.25% | 0 | 0 | 0 | +1,534,757 | +1,534,757 | 1,023,769,630 | 99.40% |
| 1. RMB ordinary shares | 875,312,459 | 84.99% | 0 | 0 | 0 | +267,337 | +267,337 | 875,579,796 | 85.01% |
| 2. Domestically listed foreign shares | 146,922,414 | 14.26% | 0 | 0 | 0 | +1,267,420 | +1,267,420 | 148,189,834 | 14.39% |
| 3. Overseas listed foreign shares | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
| 4. Others | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
| III. Total shares | 1,029,923,715 | 100.00% | 0 | 0 | 0 | 0 | 0 | 1,029,923,715 | 100.00% |
1. Reasons for share changed
√ Applicable □ Not applicable
(1)On June 18, 2024, the Company held the first meeting of the 11th Board of Directors, and held a generalelection for senior managers. Mr. Huang Danian no longer served as the Company's vice president. According to therelevant provisions of the Guideline No.18 on Self-regulation of Listed Companies of Shenzhen Stock Exchange -Reduction of Shares held by Shareholders and Directors, Supervisors and Senior Managers, During the Reporting
Period, Mr. Huang Danian, the former vice president of the Company, had left office for six months, so 75% of thetotal number of shares of the Company held by him, i.e. 267,337 shares, was lifted.
(2) On May 25, 2023, Mr. Liu Hongwei, the former Executive Vice President of the Company, resigned as theexecutive vice president of the Company for personal reasons, and his original term of office expired on June 18,2024. According to the relevant provisions of the Guideline No.18 on Self-regulation of Listed Companies ofShenzhen Stock Exchange - Reduction of Shares held by Shareholders and Directors, Supervisors and SeniorManagers, all the shares of Mr. Liu Hongwei were locked six months after his resignation, During the reportingperiod, as it had been six months since Mr. Liu Hongwei left office and his original term expired, 75% of theshares held by him, that is, 1,267,420 shares, were lifted from restricted sale.
2. Approval of share changed
□ Applicable √Not applicable
3. Ownership transfer of share changed
□ Applicable √Not applicable
4. Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per shareattributable to common shareholders of Company in latest year and period
□ Applicable √Not applicable
5. Other information necessary to disclose or need to disclosed under requirement from security regulators
□ Applicable √ Not applicable
(ii) Changes of lock-up stocks
√ Applicable □ Not applicable
In: Shares
| Shareholders | Opening shares restricted | Shares released in Period | Restricted shares increased in Period | Ending shares restricted | Restricted reasons | Date for released |
| Huang Danian | 267,337 | 0 | 267,337 | 0 | Top management lock-in stock | On June 18, 2024, the Company held the first meeting of the 11th Board of Directors, and held a general election for senior managers. Mr. Huang Danian no longer served as the Company's vice president. According to the relevant provisions of the Guideline No.18 on Self-regulation of Listed Companies of Shenzhen Stock Exchange - Reduction of Shares held by Shareholders and Directors, Supervisors and Senior Managers, During the Reporting Period, Mr. Huang Danian, the former vice president of the Company, had left |
| office for six months, so 75% of the total number of shares of the Company held by him, i.e. 267,337 shares, was lifted. | ||||||
| Liu Hongwei | 1,267,420 | 0 | 1,267,420 | 0 | Top management lock-in stock | On May 25, 2023, Mr. Liu Hongwei, the former Executive Vice President of the Company, resigned as the executive vice president of the Company for personal reasons, and his original term of office expired on June 18, 2024. According to the relevant provisions of the Guideline No.18 on Self-regulation of Listed Companies of Shenzhen Stock Exchange - Reduction of Shares held by Shareholders and Directors, Supervisors and Senior Managers, all the shares of Mr. Liu Hongwei were locked six months after his resignation, During the reporting period, as it had been six months since Mr. Liu Hongwei left office and his original term expired, 75% of the shares held by him, that is, 1,267,420 shares, were lifted from restricted sale. |
| Total | 1,534,757 | 0 | 1,534,757 | 0 | -- | -- |
II. Securities issuance and listing(i) Security offering in reporting period (Not including preferred stock)
□ Applicable √ Not applicable
(ii) Explanation on changes of total shares, shareholders structure and assets & liability structures
□ Applicable √ Not applicable
(iii) Current shares held by internal staffs
□ Applicable √ Not applicable
III. Particulars about shareholder and actual controller of the Company(i) Amount of shareholders of the Company and particulars about shares holding
In Share
| Total shareholders at end of the Period | 73,514 | Total number of common shareholders as of the end of the previous month (March 20th) prior to the disclosure date of the annual report | 71,608 | Total preference shareholders with voting rights recovered at end of reporting period (if applicable) | 0 | Total preference shareholders with voting rights recovered at end of last month before annual report disclosed (if applicable) | 0 | ||||||
| Particulars about common shares held above 5% by shareholders or top ten common shareholders(Excludes shares lent through refinancing) | |||||||||||||
| Full name of Shareholders | Nature of | Proportion | Amount of | Changes in | Amou | Amount of | Information of | ||||||
| shareholder | of shares held | common shares held at the end of reporting period | report period | nt of restricted common shares held | common shares held without restriction | shares pledged, tagged or frozen | |||
| State of share | Amount | ||||||||
| Sichuan Changhong Electric Co., Ltd. | State-owned legal person | 24.12% | 248,457,724 | 0 | 0 | 248,457,724 | - | - | |
| The National Social Security Fund 101 portfolio | Domestic non-state-owned legal person | 3.44% | 35,423,661 | +12,640,925 | 0 | 35,423,661 | - | - | |
| HKSCC | Foreign legal person | 2.98% | 30,721,614 | +26,003,000 | 0 | 30,721,614 | - | - | |
| CHANGHONG (HK) TRADING LIMITED | Foreign legal person | 2.63% | 27,077,797 | 0 | 0 | 27,077,797 | - | - | |
| Hefei Industry Investment Holding (Group) Co., Ltd. | State-owned legal person | 1.83% | 18,864,896 | -28,958,505 | 0 | 18,864,896 | - | - | |
| CAO SHENGCHUN | Foreign legal person | 1.43% | 14,766,086 | 0 | 0 | 14,766,086 | - | - | |
| Industrial Bank－Southern Xingrun value one-year holding period of hybrid securities investment fund | Domestic non-state-owned legal person | 1.24% | 12,751,953 | +3,590,353 | 0 | 12,751,953 | - | - | |
| ICBC－South Excellent Growth Stock Securities Investment Fund | Domestic non-state-owned legal person | 1.14% | 11,783,600 | +1,140,600 | 0 | 11,783,600 | - | - | |
| CUAM Fund－The National Social Security Fund 17021 portfolio | Domestic non-state-owned legal person | 0.91% | 9,419,401 | +9,419,401 | 0 | 9,419,401 | - | - | |
| PHILLIP SECURITIES（HK）LIMITED | Foreign legal person | 0.61% | 6,296,913 | 0 | 0 | 6,296,913 | - | - | |
| Strategy investors or general legal person becomes top 10 shareholders due to rights issued (if applicable) | Not applicable | ||||||||
| Explanation on associated relationship among the aforesaid shareholders | Among the above shareholders, CHANGHONG (HK) TRADING LIMITED (hereinafter referred to as Hong Kong Changhong) is the wholly-owned subsidiary of Sichuan Changhong Electric Co., Ltd., the foregoing shareholders constitute persons of uniform action. There existed no associated relationship or belong to the concerted actors as specified in the Measures for the Administration of Information Disclosure of Shareholder Equity Changes of Listed Companies among Sichuan Changhong Electric Co., Ltd, Hong Kong Changhong and other top 8 shareholders, The company neither knows whether there is any association among other shareholders, nor knows whether other shareholders belong to the persons acting in concert that is stipulated in the “Administrative Measures on Information Disclosure of Changes in Shareholding of Listed Companies”. | ||||||||
| Description of the above shareholders in relation to delegate/entrusted voting rights and abstention from voting rights. | Not Applicable | ||||||||
| Special note on the repurchase account among the top 10 shareholders (if applicable) | Not Applicable | ||||||||
| Particular about top ten shareholders with un-restrict shares held(Excluding shares lent through refinancing and Top management lock-in stock) | |||||||||
| Shareholders’ name | Amount of unrestricted shares held at end of Period | Type of shares | |||||||
| Type | Amount | ||||||||
| Sichuan Changhong Electric Co., Ltd. | 248,457,724 | Common shares in RMB | 248,457,724 | ||||||
| The National Social Security Fund 101 portfolio | 35,423,661 | Common shares in | 35,423,661 | ||||||
| RMB | ||||
| HKSCC | 30,721,614 | Common shares in RMB | 30,721,614 | |
| CHANGHONG (HK) TRADING LIMITED | 27,077,797 | Foreign shares in domestic market | 27,077,797 | |
| Hefei Industry Investment Holding (Group) Co., Ltd. | 18,864,896 | Common shares in RMB | 18,864,896 | |
| CAO SHENGCHUN | 14,766,086 | Common shares in RMB | 14,766,086 | |
| Industrial Bank－Southern Xingrun value one-year holding period of hybrid securities investment fund | 12,751,953 | Common shares in RMB | 12,751,953 | |
| ICBC－South Excellent Growth Stock Securities Investment Fund | 11,783,600 | Common shares in RMB | 11,783,600 | |
| CUAM Fund－The National Social Security Fund 17021 portfolio | 9,419,401 | Common shares in RMB | 9,419,401 | |
| PHILLIP SECURITIES（HK）LIMITED | 6,296,913 | Foreign shares in domestic market | 6,296,913 | |
| Expiation on associated relationship or consistent actors within the top 10 un-restrict shareholders and between top 10 un-restrict shareholders and top 10 shareholders | Found more in “Particulars about shares held above 5% by shareholders or top 10 shares holding” | |||
| Explanation on top ten common shareholders involving margin business (if any) | Not applicable | |||
Note 1: At end of the reporting period, the person acting in concert with controlling shareholder SichuanChanghong-- CHANGHONG (HK) TRADING LIMITED, holds B-stock of the Company as 33,374,710 shares,among which, 6,296,913 shares are held through Philip Securities (H.K.) Co., Ltd. by CHANGHONG (HK)TRADING LIMITEDNote 2: In the above table, "Particulars about shares held above 5% by shareholders or top 10 shares holding" issubject to the data on stock transfer books provided by China Securities Depository and Clearing CorporationLimited Shenzhen BranchInformation of shareholders holding more than 5% of the shares, the top 10 shareholders and the top 10shareholders of unrestricted tradable shares participating in the lending of shares in securities lending andborrowing business
□ Applicable √ Not applicable
The top 10 shareholders and the top 10 shareholders of unrestricted tradable shares have changed compared withthe previous period due to the securities lending/returning of shares in securities lending and borrowing business
□ Applicable √ Not applicable
Whether top ten common shareholders or top ten common shareholders with un-restrict shares held have abuy-back agreement dealing in reporting period.
□ Yes √ No
The top ten common shareholders or top ten common shareholders with un-restrict shares held of the Companyhave no buy –back agreement dealing in reporting period.(ii) Controlling shareholder of the Company
1. Nature of controlling shareholders: local state-owned holding
2. Type of controlling shareholders: legal person
| Controlling shareholders’ name | Legal rep./person in charge of unit | Dated founded | Organization code | Main business |
| Sichuan Changhong Electric Co., Ltd. | Liu Jiang | April 8,1993 | 91510700205412308D | Manufactures, sales and maintenance of household appliance, automotive electrical appliance, Electronic products and spare parts, communications equipment, lighting equipment, household products, computer and other Electronic equipment, specialized equipment of Electronic and Electronic, Electronic machinery and equipment, series products of batteries, Electronic medicine products, Electronic equipment, mechanical equipment, Refrigeration equipment and accessories digital monitoring products, metal products, apparatus and instruments, culture and office machines, culture and education and sports products, kitchen cabinet and gas appliance; house and equipment rental; packing products and technical services; road transportation; storage and discharging convey; R&D, sales and services of integrated circuit and software; consultancy and services of enterprise management; hi-tech project investment and other state-permitted business; development and operation of property; engineering construction for house and buildings; callback and disposal of obsolete appliance and Electronic products; services of Information Technology; consultancy and services of finance; sales, relevant import and export business of Chemical raw materials and products(Not contain dangerous chemicals), building materials, non-ferrous metal, Steel, plastics, packing material, mechanical and electrical equipment, Precious metals, Automotive components, Electronic components, Value added telecommunication service, agent service of telecommunication; designing, manufacturing, releasing and agency for the advertisement; Radio and television program production; Internet information services (excluding investment, finance and securities); audio and video production and services; R&D and design of the drone and unmanned aerial vehicle system as well as the promotion of drone technology; transfer and technical consulting service, production and sales of drone (any projects that needs permission by the law should subject to the approval by relevant authority ) |
| Equity controlling and jointly of other foreign/domestic listed company by controlling shareholder in reporting period | 1. As of December 31,2024, Sichuan Changhong directly holds 212,994,972 shares of Changhong Huayi Compressor Co., Ltd. (Stock code: 000404)- a company listed on the main board of the Shenzhen Stock Exchange, accounting for 30.60% of the equity of Changhong Huayi Compressor Co., Ltd. 2. As of December 31,2024, Sichuan Changhong indirectly holds 1,990,518,000 ordinary shares and preferred shares in total of Changhong Jiahua Holdings Co., Ltd. (Stock code: 03991) - a company listed on the main board of Hong Kong Stock Exchange, accounting for 77.44% of the whole ordinary shares and preferred shares under the name of Changhong Jiahua Holdings Co., Ltd. 3.As of December 31, 2024, Sichuan Changhong directly holds 86,258,333 shares of Sichuan Changhong Minsheng Logistics Co., Ltd (stock code:836237)- the company with shares transferring in National Equities Exchange and Quotations, accounting for 70.27% of the equity of Sichuan Changhong Minsheng Logistics Co., Ltd. 4. As of December 31, 2024, Sichuan Changhong directly holds 95% of the equity of Sichuan Changhong Innovation Investment Co., Ltd., Changhong Group, the controlling shareholder of Sichuan Changhong, directly holds 5% of the equity of Sichuan Changhong Innovation Investment Co., Ltd., and Sichuan Changhong Innovation Investment Co., Ltd. directly holds 24,068,160 shares of Sichuan Huafeng Technology Co., Ltd. (stock code: 688629), a company listed on the Science and Technology Innovation Board of the Shanghai Stock Exchange, which accounts for 5.22% of the equity of Sichuan Huafeng Technology Co., Ltd.. | |||
3. Controlling shareholder changes in reporting period
□ Applicable √ Not applicable
Controlling shareholder stays the same in Period.(iii) Actual controller of the Company and its person acting in concert
1. Nature of actual controller: local state-owned assets management
2. Type of actual controller: legal person
| Actual controller | Legal rep./person in charge of unit | Dated founded | Organization code | Main business |
| State-owned Assets Supervision & | -- | -- | -- | State-owned Assets Supervision & Administration Commission of Mianyang |
10%%
Administration Commission of MianyangMunicipality
| Administration Commission of Mianyang Municipality | Municipality is entrusted by the same level government, together performs decision-making and management of state-owned asset owners, and is one organization which executes comprehensive management and supervision on its belonged state-owned assets. | |
| Equity controlling of other foreign/domestic listed company by actual controller in reporting period | Not Applicable | |
3. Changes of actual controller in Period
□ Applicable √ Not applicable
Actual controller stays the same in Period
4. Property rights and the block diagram of the control relationship between the Company and the actual control(ended as 31
stDecember 2024)
5. Actual controller controlling the Company by means of entrust or other assets management
□ Applicable √ Not applicable
(iv) The total number of shares pledged by controlling shareholders or the first majority shareholder andits persons acting in concert accounts for 80% of the shares held by them
□ Applicable √ Not applicable
(v)Other legal person’s shareholders with over ten percent shares held 10%.
□ Applicable √ Not applicable
(vi) Actual controller controlling the Company by means of entrust or other assets management
□ Applicable √ Not applicable
IV. The specific implementation of shares repurchased/buy-back during the reporting period(i) Implementation progress of shares buy-back
□ Applicable √ Not applicable
(ii) Implementation progress of reducing holdings of shares buy-back by centralized bidding
□ Applicable √ Not applicable
绵阳市国有资产监督管理委员会
23.22%
%
23.22%
%100%四川省绵阳市虹欢科技有限责任公司
%
100%四川省绵阳市虹欢科技有限责任公司
%
长虹美菱股份有限公司
长虹美菱股份有限公司
24.12%
四川省绵阳市虹欢科技有限责任公
司
%
24.12%
四川省绵阳市虹欢科技有限责任公
司
%
3.24%
%
3.24%
%
四川长虹电子控股集团有限公司
四川长虹电子控股集团有限公司四川长虹电器股份有限公司
四川长虹电器股份有限公司长虹（香港）贸易有限公司
长虹（香港）贸易有限公司90%
%
90%
%
四川省财政厅
VIII. Situation of the Preferred Shares
□ Applicable √ Not applicable
The Company had no preferred stock in the Period
IX.Corporate Bond
□ Applicable √ Not applicable
X. Financial ReportI. Audit report
| Type of audit opinion | Standard unqualified opinion |
| Date for signing the report | April 1, 2025 |
| Name of audit institute | Pan-China Certified Public Accountants LLP |
| Serial of Auditing Report | Tianjian Review [2025] No. 11-203 |
| Name of CPA | Li Yuanliang, Peng Yahui |
Auditor’s ReportTo Shareholders of Changhong Meiling Co., Ltd.:
I.Auditor’s opinionWe, as the auditors, audited the financial statements of Changhong Meiling Co., Ltd. (the “Company”), whichincluded the consolidated balance sheet as of 31 December 2024, the consolidated statement of income, theconsolidated statement of cash flow and the consolidated statement of changes in equity of the Company forCurrent Year ended 31 December 2024, together with the relevant notes thereto.We are the view that the attached financial statements are prepared in accordance with the Business AccountingStandards in all material aspects, which reflect fairly the consolidated financial position of the Company as of 31December 2024 and the operating results and cash flow of the Company for Current Year of 2024.II. Basis for audit opinionsWe conducted this audit under the requirements of the Auditing Standards of the Certified Public Accountant ofthe PRC. The section headed “Certified Public Accountant’s responsibility for audit of financial statement” in theaudit report has further clarified our responsibilities under these standards. Pursuant to the code of professionalconduct as certified public accountant in the PRC, we are independent of the Company and have performed otherresponsibility as required by our professional ethics. We believe that the audit evidence obtained by us issufficient and adequate, which provides foundation for us to issue audit opinion.III.Key audit issuesKey audit matters are those matters that, in our professional judgment, were of most significance in our audit ofthe financial statements of the current period. These matters were addressed in the context of our audit of thefinancial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion onthese matters. The key audit matter we identified is as follows:
(1) Recognition of operating income
1. Description of item
Please refer to Notes III (XXX) and V (II) 1 to the financial statements for details of relevant information disclosure.Changhong Meiling's operating income mainly comes from selling refrigerators (freezers), air conditioners,washing machines, small home appliances, kitchens and bathrooms and other home appliances to domestic andforeign customers. In 2024, the operating income was RMB 28601036014.96 yuan, of which the income fromrefrigerators (freezers), air conditioners and washing machines was RMB 26713960170.94 yuan, accounting for
93.40% of the operating income.
As operating income is one of the key performance indicators of Changhong Meiling, there may be inherent risksthat the management of Changhong Meiling (hereinafter referred to as management) achieves specific goals or
expectations through improper income recognition. Therefore, we determine income recognition as a key audititem.
2. Audit response
For revenue recognition, the audit procedures we implemented mainly include:
(1) Understanding the key internal controls related to revenue recognition, evaluating the design of thesecontrols, determining whether they are implemented, and testing the operating effectiveness of relevant internalcontrols;
(2) Reviewing the sales contract, understanding the main contract terms or conditions, and evaluatingwhether the revenue recognition method is appropriate;
(3) Analyzing the operating revenue and gross profit rate by month, product, region, etc., identifying whetherthere are significant or abnormal fluctuations, and ascertaining the reasons for the fluctuations;
(4) For domestic sales revenue, choosing supporting documents for checked items, including sales contracts,orders, sales invoices, outbound delivery orders, shipping orders, shipping documents, customers’ signature form,and payment receipts. For overseas revenue, obtaining port information and checking with the accounting records,and checking the sales contracts, export declaration forms, bills of lading, sales invoices and other supportingdocuments by sampling;
(5) Based on the accounts receivable letter of confirmation, select specific samples to send letters ofconfirmation to major customers regarding the current sales revenue
(6) Carrying out a cut-off test and evaluating whether the operating revenue is recognized within anappropriate period
(7) Checking whether the information relating to operating revenue has been properly presented in thefinancial statements.(II) Capitalization of R&D expenditure
1. Description of item
For details of relevant information disclosure, please refer to Notes III (XXI), V (I), 21 and VI to the financialstatements.
As of December 31, 2024, the company's research and development is focused on refrigerators, washingmachines, and air conditioning projects. In 2024, the company capitalized a total of RMB 207422076.26 in R&Dinvestment generated during the research and development of patented and non patented technologies asdevelopment expenses..
R&D expenditure can be capitalized only when all the capitalization requirements listed in Note III (XXI) tothe financial statements are met. Since determining whether R&D expenditure meets all the capitalizationconditions requires significant accounting estimation and judgment by the management, we recognize thecapitalization of R&D expenditure as a key audit item.
2. Audit response
For capitalization of R&D expenditure, the audit procedures we intend to implement mainly include:
(1) Understand the scope and accounting methods of R&D expenditures, key controls for capitalizing R&Dexpenditures, and test the effectiveness of relevant internal control operations;;
(2) Understand the accounting policy for capitalization of R&D expenditure of Changhong Meiling, andevaluate whether it conforms to the relevant provisions of the Accounting Standards for Business Enterprises;
(3) Obtain a detailed list of R&D expenditures, perform analytical procedures on R&D expenditures, selectspecific samples to check supporting documents related to R&D expenditures, evaluate whether the collection scopeof R&D expenditures is appropriate, and whether R&D expenditures are true;;
(4) Obtain and check the project application report, small batch trial manufacture review report, trialproduction review report and acceptance report of the project in the development stage, and interview themanagement to evaluate whether the management's judgment on the feasibility of the project is appropriate andwhether the capitalization time of the project is reasonable;
(5) Check whether the information related to capitalization of R&D expenditure has been properly presented inthe financial report.IV. Other informationThe management of Changhong Meiling Co., Ltd. (the “Management”) is responsible for other information whichincludes the information covered in the Company’s 2022 annual report excluding the financial statement and our
audit report.The audit opinion issued by us for the financial statement has not covered other information, for which we do notissue any form of assurance opinions.Considering our audit on financial statements, we are liable to read other information, during which, we shallconsider whether other information differs materially from the financial statements or that we understand duringour audit, or whether there is any material misstatement.Based on the works executed by us, we should report the fact if we find any material misstatement in otherinformation. In t his regards, we have nothing to report.
V. Responsibilities of management and those charged with governance for the financial statementsThe management is responsible for the preparation of the financial statements in accordance with the AccountingStandards for Enterprise to secure a fair presentation, and for the design, establishment and maintenance of theinternal control necessary to enable the preparation of financial statements that are free from materialmisstatement, whether due to fraud or error.In preparing the financial statements, the management is responsible for assessing the Company’s ability tocontinue as a going concern, disclosing matters related to going concern and using the going concern assumptionunless the management either intends to liquidate the Company or to cease operations, or has no realisticalternative but to do so.Those charged with governance are responsible for overseeing the Company’s financial reporting process.VI. Responsibilities of the auditor for the financial statementsOur objectives are to obtain reasonable assurance about whether the financial statements as a whole are free frommaterial misstatement, whether due to fraud or error, and to issue an audit report that includes our audit opinion.Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordancewith the CAS will always detect a material misstatement when it exists. Misstatements can arise from fraud orerror and are considered material if, individually or in the aggregate, they could reasonably be expected toinfluence the economic decisions of users taken on the basis of the financial statements.As part of an audit in accordance with the CAS, we exercise professional judgment and maintain professionalskepticism throughout the audit. We also:
(1) identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error,
design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient andappropriate to provide a basis for audit opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions,misrepresentations, or the override of internal control.
(2) Obtain an understanding of internal control relevant to the audit in order to design audit procedures that areappropriate in the circumstances.
(3) Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates andrelated disclosures made by the management.
(4) Conclude on the appropriateness of the management’s use of the going concern assumption and, based on theaudit evidence obtained, whether a material uncertainty exists related to events or conditions that may castsignificant doubt on the Company’s ability to continue as a going concern. If we conclude that a materialuncertainty exists, we are required by the CAS to draw users’ attention in audit report to the related disclosures inthe financial statements or, if such disclosures are inadequate, to modify audit opinion. Our conclusions are basedon the information obtained up to the date of audit report. However, future events or conditions may cause theCompany to cease to continue as a going concern.
(5) Evaluate the overall presentation, structure and content of the financial statements, and whether the financialstatements represent the underlying transactions and events in a manner that achieves fair presentation.
(6) Obtain sufficient appropriate audit evidence regarding the financial information of the entities or businessactivities within the Company to express audit opinion on the financial statements. We are responsible for thedirection, supervision and performance of the group audit. We remain solely responsible for audit opinion.We communicate with those charged with governance regarding, among other matters, the planned scope andtiming of the audit and significant audit findings, including any significant deficiencies in internal control that weidentify during our audit.We also provide those charged with governance with a statement that we have complied with relevant ethicalrequirements regarding independence, and communicate with them all relationships and other matters that mayreasonably be thought to bear on our independence, related safeguard measures.From the matters communicated with those charged with governance, we determine those matters that were ofmost significance in the audit of the financial statements of the current period and are therefore the key auditmatters. We describe these matters in the auditor’s report unless law or regulation precludes public disclosureabout the matter or when, in extremely rare circumstances, we determine that a matter should not becommunicated in the auditor’s report because of the adverse consequences of doing so would reasonably beexpected to outweigh the public interest benefits of such communication.
Pan-China Certified Public Accountants LLP
| Chinese CPA: Peng Yahui | ||
| Hangzhou China | April 1，2025 |
：
| Chinese CPA: Li Yuanliang (Engagement partner) |
II. Financial statementsUnits in Notes of Financial Statements is RMB
1. Consolidated Balance Sheet
Prepared by CHANGHONG MEILING CO., LTD. December 31, 2024
In RMB
| Item | December 31,2024 | January 1,2024 |
| Current assets: | ||
| Monetary funds | 10,492,450,750.61 | 8,842,623,235.72 |
| Settlement provisions | ||
| Capital lent | ||
| Trading financial assets | 39,236,447.63 | |
| Derivative financial assets | 72,010,074.43 | |
| Note receivable | 267,174.50 | |
| Account receivable | 1,527,978,374.48 | 1,680,303,240.09 |
| Receivable financing | 1,516,987,953.83 | 1,641,858,740.34 |
| Accounts paid in advance | 60,352,345.27 | 45,796,175.02 |
| Insurance receivable | ||
| Reinsurance receivables | ||
| Contract reserve of reinsurance receivable | ||
| Other account receivable | 135,391,270.79 | 100,159,876.70 |
| Including: Interest receivable | ||
| Dividend receivable | 12,124,951.70 | |
| Buying back the sale of financial assets | ||
| Inventories | 3,514,968,009.34 | 2,022,749,908.45 |
| Including：Data resources | ||
| Contractual assets | 2,763,866.97 | 13,261,690.62 |
| Assets held for sale | ||
| Non-current asset due within one year | 60,242,921.84 | 122,294,027.78 |
| Other current assets | 562,030,362.98 | 225,419,883.07 |
| Total current assets | 17,945,175,930.54 | 14,733,970,399.92 |
| Non-current assets: | ||
| Loans and payments on behalf | ||
| Debt investment | 1,474,153,793.17 | 420,537,485.54 |
| Other debt investment | ||
| Long-term account receivable | ||
| Long-term equity investment | 81,511,146.82 | 112,745,811.75 |
| Investment in other equity instrument |
| Item | December 31,2024 | January 1,2024 |
| Other non-current financial assets | 676,094,304.44 | 674,139,515.48 |
| Investment real estate | 66,720,850.69 | 50,920,487.71 |
| Fixed assets | 2,218,850,660.12 | 2,291,776,177.80 |
| Construction in progress | 97,807,983.40 | 69,920,839.20 |
| Productive biological asset | ||
| Oil and gas asset | ||
| Right-of-use assets | 113,784,190.78 | 35,146,281.21 |
| Intangible assets | 994,429,966.05 | 930,141,998.97 |
| Including：Data resources | ||
| Expense on Research and Development | 74,710,694.74 | 97,177,535.34 |
| Including：Data resources | ||
| Goodwill | ||
| Long-term expenses to be apportioned | 33,336,772.23 | 35,698,465.62 |
| Deferred income tax asset | 176,953,941.27 | 159,838,664.57 |
| Other non-current asset | 19,073,662.23 | 26,601,614.35 |
| Total non-current asset | 6,027,427,965.94 | 4,904,644,877.54 |
| Total assets | 23,972,603,896.48 | 19,638,615,277.46 |
| Current liabilities: | ||
| Short-term loans | 766,747,286.01 | 1,134,102,419.03 |
| Loan from central bank | ||
| Capital borrowed | ||
| Trading financial liability | 32,229,012.86 | |
| Derivative financial liability | 156,359,680.92 | |
| Note payable | 7,934,125,435.65 | 5,910,417,290.11 |
| Account payable | 6,132,020,588.41 | 3,900,524,844.73 |
| Accounts received in advance | 11,085.70 | 55,949.90 |
| Contractual liability | 609,737,871.24 | 405,733,638.26 |
| Selling financial asset of repurchase | ||
| Absorbing deposit and interbank deposit | ||
| Security trading of agency | ||
| Security sales of agency | ||
| Wage payable | 389,952,777.46 | 444,585,894.98 |
| Taxes payable | 95,871,539.98 | 93,221,395.45 |
| Other account payable | 1,031,439,412.53 | 887,428,362.41 |
| Including: Interest payable | ||
| Dividend payable | 6,005,989.72 | 5,384,407.44 |
| Commission charge and commission payable | ||
| Reinsurance payable |
| Item | December 31,2024 | January 1,2024 |
| Liability held for sale | ||
| Non-current liabilities due within one year | 29,135,164.68 | 46,655,412.91 |
| Other current liabilities | 23,824,389.50 | 19,177,067.62 |
| Total current liabilities | 17,169,225,232.08 | 12,874,131,288.26 |
| Non-current liabilities: | ||
| Insurance contract reserve | ||
| Long-term loans | 108,000,000.00 | |
| Bonds payable | ||
| Including: Preferred stock | ||
| Perpetual capital securities | ||
| Lease liability | 101,826,405.91 | 28,976,808.54 |
| Long-term account payable | 455,409.20 | 800,347.84 |
| Long-term wages payable | 10,195,289.45 | 11,497,075.82 |
| Accrual liability | 45,030,417.22 | 32,054,790.39 |
| Deferred income | 125,435,177.90 | 132,977,494.33 |
| Deferred income tax liabilities | 44,072,593.30 | 19,587,398.52 |
| Other non-current liabilities | ||
| Total non-current liabilities | 327,015,292.98 | 333,893,915.44 |
| Total liabilities | 17,496,240,525.06 | 13,208,025,203.70 |
| Owner’s equity: | ||
| Share capital | 1,029,923,715.00 | 1,029,923,715.00 |
| Other equity instrument | ||
| Including: Preferred stock | ||
| Perpetual capital securities | ||
| Capital public reserve | 2,750,470,215.39 | 3,125,503,457.77 |
| Less: Inventory shares | ||
| Other comprehensive income | -21,222,419.68 | -20,704,362.05 |
| Reasonable reserve | 20,968,173.59 | 11,246,811.91 |
| Surplus public reserve | 502,454,071.02 | 477,053,194.82 |
| Provision of general risk | ||
| Retained profit | 1,803,207,185.06 | 1,438,315,123.94 |
| Total owner’ s equity attributable to parent company | 6,085,800,940.38 | 6,061,337,941.39 |
| Minority interests | 390,562,431.04 | 369,252,132.37 |
| Total owner’ s equity | 6,476,363,371.42 | 6,430,590,073.76 |
| Total liabilities and owner’ s equity | 23,972,603,896.48 | 19,638,615,277.46 |
Legal Representative: Wu DinggangPerson in charge of accounting works: Pang HaitaoPerson in charge of accounting institute: Hu Xiangfei
2. Balance Sheet of Parent Company
In RMB
| Item | December 31,2024 | January 1,2024 |
| Current assets: | ||
| Monetary funds | 3,939,389,057.28 | 4,809,758,761.19 |
| Trading financial assets | 18,729,757.94 | |
| Derivative financial assets | 19,821,438.48 | |
| Note receivable | 38,674.50 | |
| Account receivable | 833,235,885.99 | 1,451,795,533.72 |
| Receivable financing | 1,442,869,017.45 | 1,497,014,392.88 |
| Accounts paid in advance | 48,554,780.33 | 57,223,852.86 |
| Other account receivable | 149,182,032.46 | 61,841,221.91 |
| Including: Interest receivable | ||
| Dividend receivable | 12,124,951.70 | |
| Inventories | 666,268,187.19 | 563,055,688.46 |
| Data resources | ||
| Contractual assets | 37,408.05 | |
| Assets held for sale | ||
| Non-current assets maturing within one year | 122,294,027.78 | |
| Other current assets | 291,466,689.98 | 117,873,746.80 |
| Total current assets | 7,390,787,089.16 | 8,699,663,066.09 |
| Non-current assets: | ||
| Debt investment | 925,585,208.34 | 185,038,444.44 |
| Other debt investment | ||
| Long-term receivables | ||
| Long-term equity investments | 2,063,325,214.07 | 1,857,475,810.90 |
| Investment in other equity instrument | ||
| Other non-current financial assets | 641,137,345.26 | 639,796,405.98 |
| Investment real estate | 3,126,179.84 | 3,335,032.47 |
| Fixed assets | 1,053,825,318.71 | 1,129,605,191.26 |
| Construction in progress | 59,788,586.47 | 23,067,134.99 |
| Productive biological assets | ||
| Oil and natural gas assets | ||
| Right-of-use assets | 12,954,326.53 | 14,847,119.40 |
| Intangible assets | 442,210,732.72 | 450,919,869.65 |
| Data resources | ||
| Research and development costs | 38,924,294.89 | 59,134,989.07 |
| Data resources | ||
| Goodwill |
| Item | December 31,2024 | January 1,2024 |
| Long-term deferred expenses | 17,709,281.58 | 18,688,725.10 |
| Deferred income tax assets | 95,484,746.18 | 112,630,572.62 |
| Other non-current assets | 638,649.57 | 638,649.57 |
| Total non-current assets | 5,354,709,884.16 | 4,495,177,945.45 |
| Total assets | 12,745,496,973.32 | 13,194,841,011.54 |
| Current liabilities: | ||
| Short-term borrowings | 746,224,022.12 | 1,128,097,377.36 |
| Trading financial liability | 13,310,995.04 | |
| Derivative financial liability | 35,876,471.02 | |
| Notes payable | 2,977,167,497.82 | 2,697,168,522.01 |
| Account payable | 2,256,196,451.43 | 2,296,410,046.78 |
| Accounts received in advance | ||
| Contractual liability | 175,438,827.79 | 107,529,353.67 |
| Wage payable | 107,686,556.89 | 159,773,962.41 |
| Taxes payable | 17,041,928.43 | 25,137,168.64 |
| Other accounts payable | 943,872,547.30 | 951,772,428.91 |
| Including: Interest payable | ||
| Dividend payable | 5,405,989.72 | 4,784,407.44 |
| Liability held for sale | ||
| Non-current liabilities due within one year | 2,368,977.68 | 42,339,541.12 |
| Other current liabilities | 7,744,840.19 | 4,875,594.29 |
| Total current liabilities | 7,269,618,120.67 | 7,426,414,990.23 |
| Non-current liabilities: | ||
| Long-term loans | 108,000,000.00 | |
| Bonds payable | ||
| Including: Preferred stock | ||
| Perpetual capital securities | ||
| Lease liability | 12,915,911.24 | 14,511,484.16 |
| Long-term account payable | ||
| Long term employee compensation payable | 5,434,796.15 | 6,554,481.48 |
| Accrued liabilities | 12,165,219.71 | 8,758,265.23 |
| Deferred income | 81,760,946.33 | 75,130,950.40 |
| Deferred income tax liabilities | 15,926,816.74 | 13,589,235.48 |
| Other non-current liabilities | ||
| Total non-current liabilities | 128,203,690.17 | 226,544,416.75 |
| Total liabilities | 7,397,821,810.84 | 7,652,959,406.98 |
| Owners’ equity: |
| Item | December 31,2024 | January 1,2024 |
| Share capital | 1,029,923,715.00 | 1,029,923,715.00 |
| Other equity instrument | ||
| Including: Preferred stock | ||
| Perpetual capital securities | ||
| Capital public reserve | 2,601,775,532.74 | 2,740,508,510.57 |
| Less: Inventory shares | ||
| Other comprehensive income | ||
| Special reserve | 505,111.75 | |
| Surplus reserve | 502,235,905.34 | 476,835,029.14 |
| Retained profit | 1,213,740,009.40 | 1,294,109,238.10 |
| Total owner’s equity | 5,347,675,162.48 | 5,541,881,604.56 |
| Total liabilities and owner’s equity | 12,745,496,973.32 | 13,194,841,011.54 |
Legal Representative: Wu DinggangPerson in charge of accounting works: Pang HaitaoPerson in charge of accounting institute: Hu Xiangfei
3. Consolidated Profit Statement
In RMB
| Item | 2024 | 2023 |
| I. Total operating income | 28,601,036,014.96 | 24,377,974,386.94 |
| Including: Operating income | 28,601,036,014.96 | 24,377,974,386.94 |
| Interest income | ||
| Insurance gained | ||
| Commission charge and commission income | ||
| II. Total operating cost | 27,829,543,526.32 | 23,607,302,828.05 |
| Including: Operating cost | 25,411,275,203.27 | 21,134,276,562.82 |
| Interest expense | ||
| Commission charge and commission expense | ||
| Cash surrender value | ||
| Net amount of expense of compensation | ||
| Net amount of withdrawal of insurance contract reserve | ||
| Bonus expense of guarantee slip | ||
| Reinsurance expense | ||
| Tax and extras | 112,742,900.98 | 200,227,814.27 |
| Sales expense | 1,477,154,043.38 | 1,423,788,018.72 |
| Administrative expense | 359,672,540.20 | 371,930,885.44 |
| R&D expense | 637,242,233.83 | 597,529,355.84 |
| Financial expense | -168,543,395.34 | -120,449,809.04 |
| Including: Interest expenses | 24,540,000.01 | 31,212,055.56 |
| Item | 2024 | 2023 |
| Interest income | 182,415,110.59 | 193,136,304.82 |
| Add: Other income | 196,071,087.54 | 146,672,702.27 |
| Investment income (Loss is listed with “-”) | 35,709,856.70 | 7,895,511.23 |
| Including: Investment income on affiliated company and joint venture | 9,165,103.88 | 19,133,884.40 |
| The termination of income recognition for financial assets measured by amortized cost | -38,661,658.21 | -22,489,932.70 |
| Exchange income (Loss is listed with “-”) | ||
| Net exposure hedging income (Loss is listed with “-”) | ||
| Income from change of fair value (Loss is listed with “-”) | -87,184,652.30 | 7,293,761.73 |
| Loss of credit impairment (Loss is listed with “-”) | 14,901,780.81 | -81,468,574.70 |
| Losses of devaluation of asset (Loss is listed with “-”) | -116,583,058.63 | -55,234,107.48 |
| Income from assets disposal (Loss is listed with “-”) | 160,661.55 | 1,880,089.33 |
| III. Operating profit (Loss is listed with “-”) | 814,568,164.31 | 797,710,941.27 |
| Add: Non-operating income | 10,938,462.86 | 15,072,219.01 |
| Less: Non-operating expense | 11,928,863.23 | 8,367,475.17 |
| IV. Total profit (Loss is listed with “-”) | 813,577,763.94 | 804,415,685.11 |
| Less: Income tax expense | 88,910,261.07 | 36,422,352.81 |
| V. Net profit (Net loss is listed with “-”) | 724,667,502.87 | 767,993,332.30 |
| (i) Classify by business continuity | ||
| 1.continuous operating net profit (net loss listed with ‘-”) | 724,667,502.87 | 767,993,332.30 |
| 2.termination of net profit (net loss listed with ‘-”) | ||
| (ii) Classify by ownership | ||
| 1.Net profit attributable to owner’s of parent company | 699,270,051.82 | 735,828,796.67 |
| 2.Minority shareholders’ gains and losses | 25,397,451.05 | 32,164,535.63 |
| VI. Net after-tax of other comprehensive income | -465,244.39 | 433,908.69 |
| Net after-tax of other comprehensive income attributable to owners of parent company | -518,057.63 | 177,100.58 |
| (I) Other comprehensive income items which will not be reclassified subsequently to profit of loss | ||
| 1.Changes of the defined benefit plans that re-measured | ||
| 2.Other comprehensive income under equity method that cannot be transfer to gain/loss | ||
| 3.Change of fair value of investment in other equity instrument | ||
| 4.Fair value change of enterprise's credit risk | ||
| 5. Other | ||
| (ii) Other comprehensive income items which will be reclassified subsequently to profit or loss | -518,057.63 | 177,100.58 |
| 1.Other comprehensive income under equity method that can transfer to gain/loss | ||
| 2.Change of fair value of other debt investment |
| Item | 2024 | 2023 |
| 3.Amount of financial assets re-classify to other comprehensive income | ||
| 4.Credit impairment provision for other debt investment | ||
| 5.Cash flow hedging reserve | ||
| 6.Translation differences arising on translation of foreign currency financial statements | -518,057.63 | 177,100.58 |
| 7.Other | ||
| Net after-tax of other comprehensive income attributable to minority shareholders | 52,813.24 | 256,808.11 |
| VII. Total comprehensive income | 724,202,258.48 | 768,427,240.99 |
| Total comprehensive income attributable to owners of parent Company | 698,751,994.19 | 736,005,897.25 |
| Total comprehensive income attributable to minority shareholders | 25,450,264.29 | 32,421,343.74 |
| VIII. Earnings per share: | ||
| (i) Basic earnings per share | 0.6790 | 0.7144 |
| (ii) Diluted earnings per share | 0.6790 | 0.7144 |
As for the enterprise combined under the same control, net profit of 1,918,902.01 yuan achieved by the mergedparty before combination while -5,606,904.68 yuan achieved last periodLegal Representative: Wu DinggangPerson in charge of accounting works: Pang HaitaoPerson in charge of accounting institute: Hu Xiangfei
4. Profit Statement of Parent Company
In RMB
| Item | 2024 | 2023 |
| I. Operating income | 10,332,554,876.58 | 9,608,398,530.57 |
| Less: Operating cost | 9,451,034,846.99 | 8,715,341,736.95 |
| Taxes and surcharge | 45,865,395.79 | 86,233,117.13 |
| Sales expenses | 235,254,055.13 | 254,382,015.75 |
| Administration expenses | 131,613,837.20 | 139,854,173.76 |
| R&D expenses | 320,054,920.88 | 281,165,357.51 |
| Financial expenses | -55,380,238.83 | -34,410,768.97 |
| Including: Interest expenses | 15,040,671.80 | 28,980,467.63 |
| Interest income | 81,778,925.78 | 91,292,890.78 |
| Add: Other income | 34,545,492.77 | 26,474,061.57 |
| Investment income (Loss is listed with “-”) | 76,459,962.63 | 190,286,552.58 |
| Including: Investment income on affiliated Company and joint venture | 8,398,963.65 | 18,713,956.61 |
| The termination of income recognition for financial assets measured by amortized cost (Loss is listed with “-”) | -9,688,921.63 | -6,157,758.00 |
| Net exposure hedging income (Loss is listed with “-”) | ||
| Changing income of fair value (Loss is listed with “-”) | -17,915,256.16 | 13,710,776.81 |
| Loss of credit impairment (Loss is listed with “-”) | 3,500,641.91 | -9,095,054.57 |
| Losses of devaluation of asset (Loss is listed with “-”) | -24,234,772.55 | -11,009,739.57 |
| Income on disposal of assets (Loss is listed with “-”) | 3,044.16 | 1,382,274.00 |
| II. Operating profit (Loss is listed with “-”) | 276,471,172.18 | 377,581,769.26 |
| Add: Non-operating income | 594,900.34 | 1,740,921.86 |
| Less: Non-operating expense | 3,573,902.82 | 3,452,240.92 |
| III. Total Profit (Loss is listed with “-”) | 273,492,169.70 | 375,870,450.20 |
| Less: Income tax | 19,483,407.70 | 17,525,416.84 |
| IV. Net profit (Net loss is listed with “-”) | 254,008,762.00 | 358,345,033.36 |
| (i) continuous operating net profit (net loss listed with ‘-”) | 254,008,762.00 | 358,345,033.36 |
| (ii) termination of net profit (net loss listed with ‘-”) | ||
| V. Net after-tax of other comprehensive income | ||
| (i) Other comprehensive income items which will not be reclassified subsequently to profit of loss | ||
| 1.Changes of the defined benefit plans that re-measured | ||
| 2.Other comprehensive income under equity method that cannot be transfer to gain/loss | ||
| 3.Change of fair value of investment in other equity instrument | ||
| 4.Fair value change of enterprise's credit risk | ||
| 5. Other | ||
| (ii) Other comprehensive income items which will be reclassified subsequently to profit or loss | ||
| 1.Other comprehensive income under equity method that can transfer to gain/loss | ||
| 2.Change of fair value of other debt investment | ||
| 3.Amount of financial assets re-classify to other comprehensive income | ||
| 4.Credit impairment provision for other debt investment | ||
| 5.Cash flow hedging reserve | ||
| 6.Translation differences arising on translation of foreign currency financial statements | ||
| 7.Other | ||
| VI. Total comprehensive income | 254,008,762.00 | 358,345,033.36 |
| VII. Earnings per share: | ||
| (i) Basic earnings per share | 0.2466 | 0.3479 |
| (ii) Diluted earnings per share | 0.2466 | 0.3479 |
Legal Representative: Wu DinggangPerson in charge of accounting works: Pang HaitaoPerson in charge of accounting institute: Hu Xiangfei
5. Consolidated Cash Flow Statement
In RMB
| Item | 2024 | 2023 |
| Item | 2024 | 2023 |
| I. Cash flows arising from operating activities: | ||
| Cash received from selling commodities and providing labor services | 31,497,336,084.34 | 25,438,947,904.30 |
| Net increase of customer deposit and interbank deposit | ||
| Net increase of loan from central bank | ||
| Net increase of capital borrowed from other financial institution | ||
| Cash received from original insurance contract fee | ||
| Net cash received from reinsurance business | ||
| Net increase of insured savings and investment | ||
| Cash received from interest, commission charge and commission | ||
| Net increase of capital borrowed | ||
| Net increase of returned business capital | ||
| Net cash received by agents in sale and purchase of securities | ||
| Write-back of tax received | 1,035,628,999.48 | 637,810,770.31 |
| Other cash received concerning operating activities | 133,495,520.84 | 111,256,994.49 |
| Subtotal of cash inflow arising from operating activities | 32,666,460,604.66 | 26,188,015,669.10 |
| Cash paid for purchasing commodities and receiving labor service | 25,054,928,387.36 | 20,833,778,564.54 |
| Net increase of customer loans and advances | ||
| Net increase of deposits in central bank and interbank | ||
| Cash paid for original insurance contract compensation | ||
| Net increase of capital lent | ||
| Cash paid for interest, commission charge and commission | ||
| Cash paid for bonus of guarantee slip | ||
| Cash paid to/for staff and workers | 2,103,869,806.96 | 1,944,382,915.07 |
| Taxes paid | 403,412,758.30 | 571,959,228.25 |
| Other cash paid concerning operating activities | 1,133,992,434.08 | 764,985,530.77 |
| Subtotal of cash outflow arising from operating activities | 28,696,203,386.70 | 24,115,106,238.63 |
| Net cash flows arising from operating activities | 3,970,257,217.96 | 2,072,909,430.47 |
| II. Cash flows arising from investing activities: | ||
| Cash received from recovering investment | 13,508,000,000.00 | 1,290,000,000.00 |
| Cash received from investment income | 60,849,394.98 | 38,159,487.68 |
| Net cash received from disposal of fixed, intangible and other long-term assets | 3,354,735.13 | 7,434,757.68 |
| Net cash received from disposal of subsidiaries and other units | ||
| Other cash received concerning investing activities | 196,402,523.43 | 311,151,134.87 |
| Subtotal of cash inflow from investing activities | 13,768,606,653.54 | 1,646,745,380.23 |
| Cash paid for purchasing fixed, intangible and other long-term assets | 324,899,569.37 | 272,087,223.62 |
| Cash paid for investment | 15,117,895,464.58 | 1,531,781,453.97 |
| Net increase of mortgaged loans | ||
| Net cash received from subsidiaries and other units obtained |
| Item | 2024 | 2023 |
| Other cash paid concerning investing activities | 21,299,366.89 | 116,511,395.99 |
| Subtotal of cash outflow from investing activities | 15,464,094,400.84 | 1,920,380,073.58 |
| Net cash flows arising from investing activities | -1,695,487,747.30 | -273,634,693.35 |
| III. Cash flows arising from financing activities: | ||
| Cash received from absorbing investment | ||
| Including: Cash received from absorbing minority shareholders’ investment by subsidiaries | ||
| Cash received from loans | 2,356,263,587.01 | 1,923,365,052.15 |
| Other cash received concerning financing activities | 246,479,246.91 | 376,292,509.50 |
| Subtotal of cash inflow from financing activities | 2,602,742,833.92 | 2,299,657,561.65 |
| Cash paid for settling debts | 2,863,465,327.65 | 1,617,564,263.12 |
| Cash paid for dividend and profit distributing or interest paying | 337,885,485.36 | 134,699,226.43 |
| Including: Dividend and profit of minority shareholder paid by subsidiaries | 5,083,093.40 | 16,677,010.63 |
| Other cash paid concerning financing activities | 110,281,026.17 | 89,323,864.66 |
| Subtotal of cash outflow from financing activities | 3,311,631,839.18 | 1,841,587,354.21 |
| Net cash flows arising from financing activities | -708,889,005.26 | 458,070,207.44 |
| IV. Influence on cash and cash equivalents due to fluctuation in exchange rate | 19,040,332.09 | 13,436,104.02 |
| V. Net increase of cash and cash equivalents | 1,584,920,797.49 | 2,270,781,048.58 |
| Add: Balance of cash and cash equivalents at the period -begin | 8,391,177,936.62 | 6,120,396,888.04 |
| VI. Balance of cash and cash equivalents at the period -end | 9,976,098,734.11 | 8,391,177,936.62 |
Legal Representative: Wu DinggangPerson in charge of accounting works: Pang HaitaoPerson in charge of accounting institute: Hu Xiangfei
6. Cash Flow Statement of Parent Company
In RMB
| Item | 2024 | 2023 |
| I. Cash flows arising from operating activities: | ||
| Cash received from selling commodities and providing labor services | 10,717,024,476.32 | 8,764,645,288.77 |
| Write-back of tax received | 482,117,381.83 | 219,064,162.92 |
| Other cash received concerning operating activities | 60,704,809.80 | 39,429,001.18 |
| Subtotal of cash inflow arising from operating activities | 11,259,846,667.95 | 9,023,138,452.87 |
| Cash paid for purchasing commodities and receiving labor service | 9,054,439,591.12 | 7,020,255,494.88 |
| Cash paid to/for staff and workers | 555,653,802.87 | 555,776,356.25 |
| Taxes paid | 64,481,802.14 | 130,615,286.70 |
| Other cash paid concerning operating activities | 320,519,228.73 | 247,010,356.89 |
| Subtotal of cash outflow arising from operating activities | 9,995,094,424.86 | 7,953,657,494.72 |
| Net cash flows arising from operating activities | 1,264,752,243.09 | 1,069,480,958.15 |
| II. Cash flows arising from investing activities: |
| Cash received from recovering investment | 6,888,000,000.00 | 170,094,761.15 |
| Cash received from investment income | 73,566,793.59 | 252,919,498.24 |
| Net cash received from disposal of fixed, intangible and other long-term assets | 528,490.00 | 4,023,955.68 |
| Net cash received from disposal of subsidiaries and other units | ||
| Other cash received concerning investing activities | 76,881,804.89 | 92,192,116.86 |
| Subtotal of cash inflow from investing activities | 7,038,977,088.48 | 519,230,331.93 |
| Cash paid for purchasing fixed, intangible and other long-term assets | 165,621,042.85 | 145,165,539.29 |
| Cash paid for investment | 8,091,282,909.96 | 239,391,719.60 |
| Net cash received from subsidiaries and other units obtained | ||
| Other cash paid concerning investing activities | 5,392,311.69 | 54,598,530.06 |
| Subtotal of cash outflow from investing activities | 8,262,296,264.50 | 439,155,788.95 |
| Net cash flows arising from investing activities | -1,223,319,176.02 | 80,074,542.98 |
| III. Cash flows arising from financing activities: | ||
| Cash received from absorbing investment | ||
| Cash received from loans | 2,023,749,317.81 | 1,917,365,052.15 |
| Other cash received concerning financing activities | 5,141,249.61 | 191,861,996.18 |
| Subtotal of cash inflow from financing activities | 2,028,890,567.42 | 2,109,227,048.33 |
| Cash paid for settling debts | 2,555,295,723.05 | 1,433,564,263.12 |
| Cash paid for dividend and profit distributing or interest paying | 322,879,236.79 | 115,586,128.29 |
| Other cash paid concerning financing activities | 49,918,200.78 | 52,320,157.85 |
| Subtotal of cash outflow from financing activities | 2,928,093,160.62 | 1,601,470,549.26 |
| Net cash flows arising from financing activities | -899,202,593.20 | 507,756,499.07 |
| IV. Influence on cash and cash equivalents due to fluctuation in exchange rate | -6,776,238.15 | 1,866,961.18 |
| V. Net increase of cash and cash equivalents | -864,545,764.28 | 1,659,178,961.38 |
| Add: Balance of cash and cash equivalents at the period -begin | 4,746,147,736.99 | 3,086,968,775.61 |
| VI. Balance of cash and cash equivalents at the period -end | 3,881,601,972.71 | 4,746,147,736.99 |
Legal Representative: Wu DinggangPerson in charge of accounting works: Pang HaitaoPerson in charge of accounting institute: Hu Xiangfei
7. Statement of Changes in Owners’ Equity (Consolidated)
This Period
In RMB
| Item | 2024 | ||||||||||||||
| Owners’ equity attributable to the parent Company | Minority interests | Total owners’ equity | |||||||||||||
| Share capital | Other equity instrument | Capital reserve | Less: Inventory shares | Other comprehensive income | Reasonable reserve | Surplus reserve | Provision of general risk | Retained profit | Other | Subtotal | |||||
| Preferred stock | Perpetual capital securities | Other | |||||||||||||
| I. The ending balance of the previous year | 1,029,923,715.00 | 2,805,503,457.77 | -20,704,362.05 | 11,246,811.91 | 477,053,194.82 | 1,521,759,836.64 | 5,824,782,654.09 | 369,252,132.37 | 6,194,034,786.46 | ||||||
| Add: Changes of accounting policy | |||||||||||||||
| Error correction of the last period | |||||||||||||||
| Enterprise combine | |||||||||||||||
| under the same control | |||||||||||||||
| Other | 320,000,000.00 | -83,444,712.70 | 236,555,287.30 | 236,555,287.30 | |||||||||||
| II. The beginning balance of the current year | 1,029,923,715.00 | 3,125,503,457.77 | -20,704,362.05 | 11,246,811.91 | 477,053,194.82 | 1,438,315,123.94 | 6,061,337,941.39 | 369,252,132.37 | 6,430,590,073.76 | ||||||
| III. Increase/ Decrease in the period (Decrease is listed with “-”) | -375,033,242.38 | -518,057.63 | 9,721,361.68 | 25,400,876.20 | 364,892,061.12 | 24,462,998.99 | 21,310,298.67 | 45,773,297.66 | |||||||
| (i) Total comprehensive income | -518,057.63 | 699,270,051.82 | 698,751,994.19 | 25,450,264.29 | 724,202,258.48 | ||||||||||
| (ii) Owners’ devoted and decreased capital | -375,033,242.38 | -375,033,242.38 | -375,033,242.38 | ||||||||||||
| 1.Commo |
| n shares invested by shareholders | |||||||||||||||
| 2. Capital invested by holders of other equity instruments | |||||||||||||||
| 3. Amount reckoned into owners equity with share-based payment | |||||||||||||||
| 4. Other | -375,033,242.38 | -375,033,242.38 | -375,033,242.38 | ||||||||||||
| (iii) Profit distribution | 25,400,876.20 | -334,377,990.70 | -308,977,114.50 | -5,083,093.40 | -314,060,207.90 | ||||||||||
| 1. Withdrawal of surplus | 25,400,876.20 | -25,400,876.20 |
| reserves | |||||||||||||||
| 2. Withdrawal of general risk provisions | |||||||||||||||
| 3. Distribution for owners (or shareholders) | -308,977,114.50 | -308,977,114.50 | -5,083,093.40 | -314,060,207.90 | |||||||||||
| 4. Other | |||||||||||||||
| (iv) Carrying forward internal owners’ equity | |||||||||||||||
| 1. Capital reserves conversed to capital (share capital) | |||||||||||||||
| 2. Surplus reserves conversed to capital |
| (share capital) | |||||||||||||||
| 3. Remedying loss with surplus reserve | |||||||||||||||
| 4. Carry-over retained earnings from the defined benefit plans | |||||||||||||||
| 5. Carry-over retained earnings from other comprehensive income | |||||||||||||||
| 6. Other | |||||||||||||||
| (v) Reasonable reserve | 9,721,361.68 | 9,721,361.68 | 943,127.78 | 10,664,489.46 | |||||||||||
| 1. Withdraw | 40,415,747.60 | 40,415,747.60 | 1,758,422.51 | 42,174,170.11 |
| al in the report period | |||||||||||||||
| 2. Usage in the report period | 30,694,385.92 | 30,694,385.92 | 815,294.73 | 31,509,680.65 | |||||||||||
| (vi) Others | |||||||||||||||
| IV. Balance at the end of the period | 1,029,923,715.00 | 2,750,470,215.39 | -21,222,419.68 | 20,968,173.59 | 502,454,071.02 | 1,803,207,185.06 | 6,085,800,940.38 | 390,562,431.04 | 6,476,363,371.42 |
Last Period
In RMB
| Item | 2023 | ||||||||||||||
| Owners’ equity attributable to the parent Company | Minority interests | Total owners’ equity | |||||||||||||
| Share capital | Other equity instrument | Capital reserve | Less: Inventory shares | Other comprehensive income | Reasonable reserve | Surplus reserve | Provision of general risk | Retained profit | Other | Subtotal | |||||
| Preferred stock | Perpetual capital securities | Other | |||||||||||||
| I. The ending balance of the previous year | 1,029,923,715.00 | 2,806,493,904.30 | -20,881,462.63 | 2,467,205.78 | 441,201,471.98 | 909,082,037.66 | 5,168,286,872.09 | 370,748,395.26 | 5,539,035,267.35 | ||||||
| Error correction | 17,219.50 | 167,328.13 | 184,547.63 | -8,145.54 | 176,402.09 | ||||||||||
| of the last period | |||||||||||||||
| Enterprise combine under the same control | |||||||||||||||
| Other | 320,000,000.00 | -78,235,400.83 | 241,764,599.17 | 241,764,599.17 | |||||||||||
| II. The beginning balance of the current year | 1,029,923,715.00 | 3,126,493,904.30 | -20,881,462.63 | 2,467,205.78 | 441,218,691.48 | 831,013,964.96 | 5,410,236,018.89 | 370,740,249.72 | 5,780,976,268.61 | ||||||
| III. Increase/ Decrease in the period (Decrease is listed with “-”) | -990,446.53 | 177,100.58 | 8,779,606.13 | 35,834,503.34 | 607,301,158.98 | 651,101,922.50 | -1,488,117.35 | 649,613,805.15 | |||||||
| (i) Total comprehensive income | 177,100.58 | 735,828,796.67 | 736,005,897.25 | 32,421,343.74 | 768,427,240.99 | ||||||||||
| (ii) Owners’ devoted and decreased capital | -990,446.53 | -990,446.53 | -18,627,553.47 | -19,618,000.00 | |||||||||||
| 1.Common shares invested by shareholders | |||||||||||||||
| 2. Capital invested by holders of other equity instruments | |||||||||||||||
| 3. Amount reckoned into owners equity |
| with share-based payment | |||||||||||||||
| 4. Other | -990,446.53 | -990,446.53 | -18,627,553.47 | -19,618,000.00 | |||||||||||
| (iii) Profit distribution | 35,834,503.34 | -128,527,637.69 | -92,693,134.35 | -16,677,010.63 | -109,370,144.98 | ||||||||||
| 1. Withdrawal of surplus reserves | 35,834,503.34 | -35,834,503.34 | |||||||||||||
| 2. Withdrawal of general risk provisions | |||||||||||||||
| 3. Distribution for owners (or shareholders) | -92,693,134.35 | -92,693,134.35 | -16,677,010.63 | -109,370,144.98 | |||||||||||
| 4. Other | |||||||||||||||
| (iv) Carrying forward internal owners’ equity | |||||||||||||||
| 1. Capital reserves conversed to capital (share capital) | |||||||||||||||
| 2. Surplus reserves conversed to capital (share capital) | |||||||||||||||
| 3. Remedying loss with surplus reserve |
| 4. Carry-over retained earnings from the defined benefit plans | |||||||||||||||
| 5. Carry-over retained earnings from other comprehensive income | |||||||||||||||
| 6. Other | |||||||||||||||
| (v) Reasonable reserve | 8,779,606.13 | 8,779,606.13 | 1,395,103.01 | 10,174,709.14 | |||||||||||
| 1. Withdrawal in the report period | 31,277,872.27 | 31,277,872.27 | 2,105,658.15 | 33,383,530.42 | |||||||||||
| 2. Usage in the report period | 22,498,266.14 | 22,498,266.14 | 710,555.14 | 23,208,821.28 | |||||||||||
| (vi) Others | |||||||||||||||
| IV. Balance at the end of the period | 1,029,923,715.00 | 3,125,503,457.77 | -20,704,362.05 | 11,246,811.91 | 477,053,194.82 | 1,438,315,123.94 | 6,061,337,941.39 | 369,252,132.37 | 6,430,590,073.76 |
Legal Representative: Wu Dinggang Person in charge of accounting works: Pang Haitao Person in charge of accounting institute: Hu Xiangfei
8. Statement of Changes in Owners’ Equity (Parent Company)This Period
In RMB
| Item | 2024 | |||||||||||
| Share capital | Other equity instrument | Capital reserve | Less: Inventory shares | Other com | Reasonable reserve | Surplus reser | Retained profit | Other | Total owners’ equity | |||
| Preferred | Perpetual | Other | ||||||||||
| stock | capital securities | prehensive income | ve | |||||||||
| I. The ending balance of the previous year | 1,029,923,715.00 | 2,740,508,510.57 | 505,111.75 | 476,835,029.14 | 1,294,109,238.10 | 5,541,881,604.56 | ||||||
| Add: Changes of accounting policy | ||||||||||||
| Error correction of the last period | ||||||||||||
| Other | ||||||||||||
| II. The beginning balance of the current year | 1,029,923,715.00 | 2,740,508,510.57 | 505,111.75 | 476,835,029.14 | 1,294,109,238.10 | 5,541,881,604.56 | ||||||
| III. Increase/ Decrease in the period (Decrease is listed with “-”) | -138,732,977.83 | -505,111.75 | 25,400,876.20 | -80,369,228.70 | -194,206,442.08 | |||||||
| (i) Total comprehensive income | 254,008,762.00 | 254,008,762.00 | ||||||||||
| (ii) Owners’ devoted and | -138,732,977.83 | -138,732,977.83 |
| decreased capital | ||||||||||||
| 1.Common shares invested by shareholders | ||||||||||||
| 2. Capital invested by holders of other equity instruments | ||||||||||||
| 3. Amount reckoned into owners equity with share-based payment | ||||||||||||
| 4. Other | -138,732,977.83 | -138,732,977.83 | ||||||||||
| (iii) Profit distribution | 25,400,876.20 | -334,377,990.70 | -308,977,114.50 | |||||||||
| 1. Withdrawal of surplus reserves | 25,400,876.20 | -25,400,876.20 | ||||||||||
| 2. Distribution for owners (or shareholders) | -308,977,114.50 | -308,977,114.50 | ||||||||||
| 3. Other |
| (iv) Carrying forward internal owners’ equity | ||||||||||||
| 1. Capital reserves conversed to capital (share capital) | ||||||||||||
| 2. Surplus reserves conversed to capital (share capital) | ||||||||||||
| 3. Remedying loss with surplus reserve | ||||||||||||
| 4. Carry-over retained earnings from the defined benefit plans | ||||||||||||
| 5. Carry-over retained earnings from other comprehensive income |
| 6. Other | ||||||||||||
| (v) Reasonable reserve | -505,111.75 | -505,111.75 | ||||||||||
| 1. Withdrawal in the report period | 10,305,674.40 | 10,305,674.40 | ||||||||||
| 2. Usage in the report period | 10,810,786.15 | 10,810,786.15 | ||||||||||
| (vi) Others | ||||||||||||
| IV. Balance at the end of the period | 1,029,923,715.00 | 2,601,775,532.74 | 502,235,905.34 | 1,213,740,009.40 | 5,347,675,162.48 |
Last period
In RMB
| Item | 2023 | |||||||||||
| Share capital | Other equity instrument | Capital reserve | Less: Inventory shares | Other comprehensive income | Reasonable reserve | Surplus reserve | Retained profit | Other | Total owners’ equity | |||
| Preferred stock | Perpetual capital securities | Other | ||||||||||
| I. The ending balance of the previous year | 1,029,923,715.00 | 2,740,508,510.57 | 687,069.38 | 440,983,306.30 | 1,064,136,866.98 | 5,276,239,468.23 | ||||||
| Add: Changes of accounting policy | 17,219.50 | 154,975.45 | 172,194.95 | |||||||||
| Error correction of the last period | ||||||||||||
| Other | ||||||||||||
| II. The beginning balance of the current year | 1,029,923,715.00 | 2,740,508,510.57 | 687,069.38 | 441,000,525.80 | 1,064,291,842.43 | 5,276,411,663.18 | ||||||
| III. Increase/ Decrease in the period (Decrease is listed with “-”) | -181,957.63 | 35,834,503.34 | 229,817,395.67 | 265,469,941.38 | ||||||||
| (i) Total comprehensive income | 358,345,033.36 | 358,345,033.36 | ||||||||||
| (ii) Owners’ devoted and decreased capital | ||||||||||||
| 1.Common shares invested by shareholders | ||||||||||||
| 2. Capital invested by holders of other equity instruments |
| 3. Amount reckoned into owners equity with share-based payment | ||||||||||||
| 4. Other | ||||||||||||
| (iii) Profit distribution | 35,834,503.34 | -128,527,637.69 | -92,693,134.35 | |||||||||
| 1. Withdrawal of surplus reserves | 35,834,503.34 | -35,834,503.34 | ||||||||||
| 2. Distribution for owners (or shareholders) | -92,693,134.35 | -92,693,134.35 | ||||||||||
| 3. Other | ||||||||||||
| (iv) Carrying forward internal owners’ equity | ||||||||||||
| 1. Capital reserves conversed to capital (share capital) | ||||||||||||
| 2. Surplus reserves conversed to capital (share |
| capital) | ||||||||||||
| 3. Remedying loss with surplus reserve | ||||||||||||
| 4. Carry-over retained earnings from the defined benefit plans | ||||||||||||
| 5. Carry-over retained earnings from other comprehensive income | ||||||||||||
| 6. Other | ||||||||||||
| (v) Reasonable reserve | -181,957.63 | -181,957.63 | ||||||||||
| 1. Withdrawal in the report period | 8,557,762.79 | 8,557,762.79 | ||||||||||
| 2. Usage in the report period | 8,739,720.42 | 8,739,720.42 | ||||||||||
| (vi) Others | ||||||||||||
| IV. Balance at the end of the period | 1,029,923,715.00 | 2,740,508,510.57 | 505,111.75 | 476,835,029.14 | 1,294,109,238.10 | 5,541,881,604.56 |
Legal Representative: Wu Dinggang Person in charge of accounting works: Pang Haitao Person in charge of accounting institute: Hu Xiangfei
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2024 to December 31, 2024（Unless other wise specified, RMB for record in the statement)
I. Company profileChanghong Meiling Co., Ltd (hereinafter referred to as “the Company”) ，originally named asHefei Meiling Co., Ltd. is an incorporated Company established and reorganized by Hefei MeilingRefrigerator General Factory and approved on June 12
th1992 through [WanTiGaiHanZi (1992)No.039] issued by original Mechanism Reform Committee of Anhui Province. On August 30
th
1993, through Anhui Provincial Government [Wanzhenmi (1993) No.166] and re-examination ofChina Securities Regulatory Commission, the Company made first public issue for 30 million Ashares and the Company was listed on Oct. 18
th
, 1993 in Shenzhen Stock Exchange. On August
th, 1996, the Company was approved to issue 100 million B shares to investors abroad through[ZhengWeiFa (1996) No.26] issued by China Securities Regulatory Commission. The Companywent public in Shenzhen Stock Exchange on August 28
th, 1996.State-owned Assets Supervision & Administration Commission of the State Council approvedsuch transfers with Document GuoziChanquan (2007) No.253 Reply on Matters of Hefei MeilingGroup Holdings Limited Transferring Partial State-owned Ownership, Hefei Meiling GroupHoldings Limited (hereinafter referred to as Meiling Group) transferred its holding 37,852,683shares in 82,852,683 state-owned shares of the Company to Sichuan Changhong Electronic GroupCo., Ltd (hereinafter referred to as Changhong Group), other 45,000,000 shares to SichuanChanghong Electric Co. Ltd (hereinafter referred to as Sichuan Changhong). On Aug 15, 2007, theabove ownership was transferred and Cleaning Corporation Limited.On 27 August 2007, State-owned Assets Supervision & Administration Commission of AnhuiProvincial Government replied with Document [WGZCQH (2007) No.309] Reply on “RelatedMatters of Share Merger Reform of Hefei Meiling Co., Ltd.”, agreed the Company’s ownershipsplit reform plan. The Company made consideration that non-tradable share holders deliver 1.5shares to A share holders per 10 shares, and original Meiling Group made prepayment 3,360,329shares for some non-tradable share holders as consideration for split reform plan.On 29 May 2008, concerning 34,359,384 state-owned shares (including 3,360,329 shares paid forother non-tradable shareholders by original Meiling Group in share reform) held by originalMeiling Group, the “Notice of Freely Transfer of Meiling Electrics Equity held by MeilingGroup”[HGZCQ(2008) No. 59] issued from State-owned Assets Supervision & AdministrationCommission of Hefei Municipal, agrees to transfer the above said shares to Hefei Xingtai HoldingGroup Co., Ltd.(“Xingtai Holding Co.,”) for free. On 7 August 2008, the “Reply of TransferFreely of Part of the Shares of Hefei Meiling Co., Ltd. held by State-owned shareholders” [GZCQ(2007) No. 752] issued by SASAC, agrees the above said transferring.On October 29, 2008, ChanghongGroup signed Agreement on Equity Transfer of Hefei MeilingCo., Ltd with Sichuan Changhong, in which 32,078,846 tradable A-shares with conditionalsubscription of the Company (accounting for 7.76% in total shares) held by Changhong Group. On23 December 2008, “Reply of Transfer Freely of Part of the Shares of Hefei Meiling Co., Ltd.held by State-owned shareholders” [GZCQ (2008) No. 1413] issued by SASAC agrees the abovesaid share transferring.On 24 December 2010, being deliberated and approved in 32
nd
Session of 6
th BOD and 2
nd
Extraordinary Shareholders’ General Meeting of 2010 as well as approval of document [ZJXK(2010) No. 1715] from CSRC, totally 116,731,500 RMB ordinary shares (A stock) were offeringprivately to target investors with issue price of RMB 10.28/share. Capital collecting amounting toRMB 1,199,999,820 after issuing expenses RMB 22,045,500 deducted, net capital collected
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2024 to December 31, 2024（Unless other wise specified, RMB for record in the statement)
amounting to RMB 1,177,954,320, and paid-in capital (share capital) increased RMB 116,731,500with capital reserve (share premium) RMB 1,061,106,088.5 increased. The increasing capital hasbeen verified by Capital Verification Report No.: ［XYZH2010CDA6021］issued from Shin WingCPA Co., Ltd.On 20 June 2011, the general meeting of the Company considered and approved the 2010 profitdistribution plan, namely to distribute cash dividends of RMB0.5 (tax included) plus two sharesfor every ten shares held by shareholders to all shareholders, based on the total share capital of530,374,449 shares as of 31 December 2010. The total share capital of the Company upon profitdistribution increased to 636,449,338 shares. The capital increase was verified by AnhuiHuashenZhengda Accounting Firm with the verification report WHSZDKYZ (2011) No.141.On 26 June 2012, the general meeting of the Company considered and approved the 2011 profitdistribution and capitalization of capital reserve plan, namely to distribute cash dividends ofRMB0.5 (tax included) plus two shares for every ten shares to all shareholders capitalized fromcapital reserve, based on the total share capital of 636,449,338 shares as of 31 December 2011.The total share capital of the Company upon implementation of capitalization of capital reserveincreased to 763,739,205 shares from 636,449,338 shares, and was verified by Anhui AnlianXindaAccounting Firm with the verification report WALXDYZ (2012) No.093.On November 18, 2015, considered and approved by the 12
th Session of the 8
thBOD of thecompany and the first extraordinary general meeting in 2016, and approved by the document ofChina Securities Regulatory Commission [CSRC License No. (2016) 1396] “Reply to theapproval of non-public offering of shares of Hefei Meiling Co., Ltd.”, the company has actuallyraised funds of 1,569,999,998.84 yuan by non-public offering of no more than 334,042,553 newshares at face value of 1 yuan per share and with issue price no less than 4.70 yuan per share, afterdeducting the issue costs of 29,267,276.08 yuan, the net amount of raised funds is1,540,732,722.76 yuan, the increased paid-in capital (share capital) of 280,858,676.00 yuan,increased capital reserve (share premium) of 1,259,874,046.76 yuan. This capital increase hasbeen verified by No.［XYZH2016CDA40272］capital verification report of Shine Wing CertifiedPublic Accountants (LLP).Since the first repurchase of shares on November 4, 2020, the company had cumulativelyrepurchased 14,674,166 shares of the company (B shares) in centralized bidding transactionsthrough the special securities account for repurchase until February 18, 2022, and completed thecancellation procedures of the repurchased shares at the Shenzhen Branch of China SecuritiesDepository and Clearing Co., Ltd. on March 2, 2022, a total of 14,674,166 shares of the company(B shares) were cancelled, accounting for 1.4048% of the company's total share capital beforecancellation. After the cancellation, the total share capital of the company was reduced from1,044,597,881 shares to 1,029,923,715 shares.Ended as December 31, 2024, total share capital of the Company amounting to1,029,923,715shares with ordinary shares in full. Among which, 881,733,881 shares of A-shareaccounting 85.61% in total shares while B-share with 148,189,834 shares accounting 14.39% intotal shares. Specific capital structure is as follows:
| Type of stock | Quantity | Proportion |
| (I)Restricted shares | 6,154,085 | 0.60 |
| 1. State-owned shares |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2024 to December 31, 2024（Unless other wise specified, RMB for record in the statement)
| Type of stock | Quantity | Proportion |
| 2. State-owned legal person’s shares | 1,141,053 | 0.11 |
| 3. Other domestic shares | 5,013,032 | 0.49 |
| Including: Domestic legal person’s shares | 3,363,539 | 0.33 |
| Domestic natural person’s shares | 1,649,493 | 0.16 |
| 4. Foreign shares | ||
| (II)Unrestricted shares | 1,023,769,630 | 99.40 |
| 1. RMB Ordinary shares | 875,579,796 | 85.01 |
| 2. Domestically listed foreign shares | 148,189,834 | 14.39 |
| 3. Overseas listed foreign shares | ||
| 4. Others | ||
| Total shares | 1,029,923,715 | 100.00 |
The Company belongs to the manufacture of light industry, and engaged in the production andsale of refrigerator, freezer and air-conditioner. Unified social credit code of the Company:
9134000014918555XK; Address: No.2163, Lianhua Road, Economy and TechnologyDevelopment Zone, Hefei City; Legal Representative: Wu Dinggang; register capital (paid-incapital): 1,029,923,715 yuan; type of company: limited liability company(joint venture and listedof Taiwan, Hong Kong and Macao)This financial statement was approved by the Board of Directors of the Company on April 1, 2025.According to the Articles of Association of the Company, the financial statement will be submittedto the General Meeting of Shareholders for review.II.Basis for preparation of financial statement
1.Basis for preparation
According to the actual transactions and matters, the Company's financial statements are preparedin accordance with the Accounting Standards for Business Enterprises and its applicationguidelines, explanations and other relevant provisions (hereinafter referred to as "AccountingStandards for Business Enterprises") promulgated by the Ministry of Finance, as well as thedisclosure-related provisions of No.15 Rules on Information Disclosure and Compilation ofCompanies Offering Securities to the Public - General Provisions on Financial Reports (revised in2023) issued by China Securities Regulatory Commission (hereinafter referred to as "CSRC").
2.Continuous operation
The Company recently has a history of profitability operation and has financial resourcessupporting, and prepared the financial statement on basis of going concern is reasonable.III.Significant Accounting Policy and accounting EstimationSpecific accounting policies and accounting estimates: The specific accounting policies andaccounting estimates formulated by the Company according to the actual production and operationcharacteristics include bad debt provision of receivable, inventory depreciation provision,capitalization conditions of R&D expenses, revenue recognition and measurement, etc.
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2024 to December 31, 2024（Unless other wise specified, RMB for record in the statement)
1.Statement on observation of accounting standards for enterprise
The financial statements prepared by the Company meet the requirements of the AccountingStandards for Business Enterprises, and truly, accurately and completely reflect the financial statusof the Company on December 31, 2024, as well as the operating results and cash flow in 2024.
2.Accounting period
The accounting period of the Company is the calendar date from 1 January to 31 December.
3.Operation cycle
Operation cycle of the Company was 12 months, and it is the standard of flow classification forassets and liabilities.
4.Standard currency for accounting
The Company takes RMB as the standard currency for accounting.
5.Determination method and selection basis of importance standard
The Company follows the principle of materiality in preparing and disclosing financial statements.The matters disclosed in the notes to the financial statements involving judgement by materialitystandard, and the determination method and selection basis of materiality standard are as follows:
| Matters disclosed involving the judgment by materiality standards | Determination method and selection basis of importance standard |
| Material receivables with bad debt provision accrued individually | The single accrual amount accounts for 10% of the total bad debt provision of various receivables and is more than RMB 50 million |
| Material amount recovered or reversed from bad debt provision of receivables in this period | The single amount recovered or reversed accounts for more than 10% of the total receivables and is more than RMB 50 million |
| Actual write-off of material receivables | The single write-off amount accounts for more than 10% of the total bad debt provision of various receivables and is more than RMB 50 million |
| Significant change has taken place in the book value of the contract assets | The change in book value of contract assets accounts for more than 30% of the balance of contract assets at the beginning of the period |
| Significant change has taken place in the book value of contractual liabilities | The change in book value of contractual liabilities accounts for more than 30% of the balance of contractual liabilities at the beginning of the period |
| Material contractual liabilities with an age of more than one year | Contractual liabilities with a single aging of more than one year account for more than 10% of the total contractual liabilities and are more than RMB 50 million |
| Material payables | Payables with a single aging of more than one year account for more than 5% of the total payables and are more than RMB 100 million |
| Other material payables | Other payables with a single aging of more than one year account for more than 5% of the total amount of other payables and are more than RMB 50 million |
| Material construction in progress | The budget of a single project is more than RMB 100 million |
| Material capitalized R&D projects | The ending balance of a single project accounts for more than |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2024 to December 31, 2024（Unless other wise specified, RMB for record in the statement)
| Matters disclosed involving the judgment by materiality standards | Determination method and selection basis of importance standard |
| 10% of the ending balance of development expenditure and is more than RMB 10 million | |
| Important investment activities | The cash received from or paid for a single investment activity accounts for more than 10% of the total inflow or outflow and is more than RMB 100 million |
| Important non-wholly-owned subsidiaries | The net assets of subsidiaries account for more than 1% of the Company's net assets |
| An important cooperative enterprise or joint venture | The book value of the long-term equity investment in a single investee accounts for more than 1% of the Company's net assets and is more than RMB 50 million, or the investment profit and loss under the long-term equity investment method accounts for more than 1% of the Company's consolidated net profit |
| Major activities not involving current cash receipts and payments | It does not involve the current cash receipts and payments, and the impact on the current statements is greater than 10% of the net assets |
6.Accountant arrangement method of business combination under common control and not undercommon controlAs acquirer, the Company measures the assets and liabilities acquired through businesscombination under common control at their carrying values as reflected in the consolidatedfinancial statement of the ultimate controller as of the combination date. Capital reserve shall beadjusted in respect of any difference between carrying value of the net assets acquired andcarrying value of the combination consideration paid. In case that capital reserve is insufficient tooffset, the Company would adjust retained earnings.
The acquiree’s net identifiable assets, liabilities or contingent liabilities acquired through businesscombination not under common control shall be measured at fair value as of the acquisition date.The cost of combination represents the fair value of the cash or non-cash assets paid, liabilitiesissued or committed and equity securities issued by the Company as at the date of combination inconsideration for acquiring the controlling power in the acquiree, together with the sum of anydirectly related expenses occurred during business combination(in case of such businesscombination as gradually realized through various transactions, the combination cost refers to thesum of each cost of respective separate transaction). Where the cost of the combination exceedsthe acquirer’s interest in the fair value of the acquirer’s identifiable net assets acquired, thedifference is recognized as goodwill; where the cost of combination is lower than the acquirer’sinterest in the fair value of the acquiree’s identifiable net assets, the Company shall firstly makefurther review on the fair values of the net identifiable assets, liabilities or contingent liabilitiesacquired as well as the fair value of the non-cash assets portion of combination consideration orthe equity securities issued by the Company. In case that the Company finds the cost ofcombination is still lower than the acquirer’s interest in the fair value of the acquiree’s identifiablenet assets after such further review, the difference is recognized in non-operating income for thecurrent period when combination occurs.
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2024 to December 31, 2024（Unless other wise specified, RMB for record in the statement)
7.Criteria for Control and Preparation Method of Consolidated Financial StatementsControl means that the Company has the power over the investee, enjoys variable returns byparticipating in the related activities of the investee, and has the ability to influence the amount ofreturns by using the power over the investee.The Company shall put all the subsidiaries controlled and main body structured into consolidatedfinancial statements.Any difference arising from the inconformity of accounting year or accounting policies betweenthe subsidiaries and the Company shall be adjusted in the consolidated financial statements.All the material inter-company transactions, non-extraordinary items and unrealized profit withinthe combination scope are written-off when preparing consolidated financial statement. Owners’equity of subsidiary not attributable to parent company and current net gains and losses, othercomprehensive income and total comprehensive income attributable to minority shareholders arerecognized as non-controlling interests, minority interests, other comprehensive incomeattributable to minority shareholders and total comprehensive income attributable to minorityshareholders in consolidated financial statement respectively.As for subsidiary acquired through business combination under common control, its operatingresults and cash flow will be included in consolidated financial statement since the beginning ofthe period when combination occurs. When preparing comparative consolidated financialstatement, the relevant items in previous years financial statement shall be adjusted as if thereporting entity formed upon combination has been existing since the ultimate controllercommenced relevant control.As for equity interests of the investee under common control acquired through varioustransactions which eventually formed business combination, the Company shall supplementdisclosure of the accounting treatment in consolidated financial statement in the reporting periodwhen controlling power is obtained. For example, as for equity interests of the investee undercommon control acquired through various transactions which eventually formed businesscombination, adjustments shall be made as if the current status had been existing when theultimate controller commenced control in connection of preparing consolidated financial statement;in connection with preparing comparative statement, the Company shall consolidate the relevantassets and liabilities of the acquiree into the Company’s comparative consolidated financialstatement to the extent not earlier than the timing when the Company and the acquiree are allunder control of the ultimate controller, and the net assets increased due to combination shall beused to adjust relevant items under owners’ equity in comparative statement. In order to preventdouble computation of the value of the acquiree’s net assets, the relevant profits and losses, othercomprehensive income and change of other net assets recognized during the period from the datewhen the Company acquires original equity interests and the date when the Company and theacquiree are all under ultimate control of the same party (whichever is later) to the date ofcombination in respect of the long-term equity investment held by the Company beforesatisfaction of combination shall be utilized to offset the beginning retained earnings and currentgains and losses in the period as the comparative financial statement involves, respectively.As for subsidiary acquired through business combination not under common control, its operatingresults and cash flow will be included in consolidated financial statement since the Companyobtains controlling power. When preparing consolidated financial statement, the Company shalladjust the subsidiary’s financial statement based on the fair value of the various identifiable assets,
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2024 to December 31, 2024（Unless other wise specified, RMB for record in the statement)
liabilities or contingent liabilities recognized as of the acquisition date.As for equity interests of the investee not under common control acquired through varioustransactions which eventually formed business combination, the Company shall supplementdisclosure of the accounting treatment in consolidated financial statement in the reporting periodwhen controlling power is obtained. For example, as for equity interests of the investee not undercommon control acquired through various transactions which eventually formed businesscombination, when preparing consolidated financial statement, the Company would re-measurethe equity interests held in the acquiree before acquisition date at their fair value as of theacquisition date, and any difference between the fair value and carrying value is included incurrent investment income. in case that the equity interests in acquiree held by the Companybefore the relevant acquisition date involves other comprehensive income at equity method andchange of other owners’ equity (other than net gains and losses, other comprehensive income andprofit distribution), then the equity interests would transfer to investment gains and losses for theperiod which the acquisition date falls upon. The other comprehensive income arising fromchange of the net liabilities or net assets under established benefit scheme as acquiree’sre-measured such scheme is excluded.The transaction with non-controlling interest to dispose long-term equity investment in asubsidiary without losing control rights over the subsidiary, the difference between the proceedsfrom disposal of interests and the decrease of the shared net assets of the subsidiary is adjusted tocapital premium (share premium). In case capital reserve is not sufficient to offset the difference,retained earnings will be adjusted.As for disposal of part equity investment which leads to losing control over the investee, theCompany would remeasure the remaining equity interests at their fair value as of the date whenthe Company loses control over the investee when preparing consolidated financial statement. Thesum of consideration received from disposal of equity interest and fair value of the remainingequity interest, less the net assets of the original subsidiary attributable to the Company calculatedbased on the original shareholding proportion since the acquisition date or the date thenconsolidation commences, is included in investment gains and losses for the period when controlis lost, meanwhile to offset goodwill. Other comprehensive income related to equity interestinvestment in original subsidiaries is transferred into current investment gains and losses upon lostof control. If the disposal of the equity investment of subsidiary is realized through multi pletransection sunlit loss of control and is a pack age deal. the accounting treatment of the sterna sectionsshould be dealt with as one transaction of disposal of the subsidiary until loss of control. However,before the Company loses total control of the subsidiary, the differences between the actualdisposal price and the share of the net assets of the subsidiary disposed of in every transactionshould be recognized as other comprehensive income in the consolidated financial statements, andtransferred to profit or loss when losing control.
8. Accounting treatment for joint venture arrangement and joint controlled entityThe joint venture arrangement of the Company consists of joint controlled entity and joint venture.As for jointly controlled entity, the Company determines the assets held and liabilities assumedseparately as a party to the jointly controlled entity, recognizes such assets and liabilitiesaccording to its proportion, and recognizes relevant income and expense separately under relevantagreement or according to its proportion. As for asset transaction relating to purchase and saleswith the jointly controlled entity which does not constitute business activity, part of the gains and
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2024 to December 31, 2024（Unless other wise specified, RMB for record in the statement)
losses arising from such transaction attributable to other participators of the jointly controlledentity is only recognized.
9.Cash and cash equivalents
Cash comprises cash on hand and deposits that can be readily withdrawn on demand.Cashequivalents include short-term (generally within three months of maturity atacquisition),highly liquid investments that are readily convertible into known amounts ofcashandwhichare subject to an insignificant risk of changes in value.
10. Foreign currency business and foreign currency financial statement conversion
(1) Foreign currency business
As for the foreign currency business, the Company converts the foreign currency amount intoRMB amount pursuant to the spot exchange rate as of the business day. As at the balance sheetdate, monetary items expressed by foreign currency are converted into RMB pursuant to the spotexchange rate as of the balance sheet date. The conversion difference occurred is recorded intoprevailing gains and losses, other than the disclosure which is made according to capitalizationrules for the exchange difference occurred from the special foreign currency borrowings borrowedfor constructing and producing the assets satisfying condition of capitalization. As for the foreigncurrency non-monetary items measured by fair value, the amount is then converted into RMBaccording to the spot exchange rate as of the confirmation day for fair value. And the conversiondifference occurred during the procedure is recorded into prevailing gains and losses directly aschange of fair value. As for the foreign currency non-monetary items measured by historical cost,conversion is made with the spot exchange rate as of the business day, with no change in RMBamount.
(2) Conversion of foreign currency financial statement
Spot exchange rate as of the balance sheet date is adopted for conversion of assets and liabilities inforeign currency balance sheet; as for the items in statement of owners’ equity except for“Retained profit”, conversion is made pursuant to the spot exchange rate of business day; incomeand expense items in income statement then are also converted pursuant to the spot exchange rateof transaction day. Difference arising from the aforementioned conversions shall be listedseparately in items of owners’ equity. Spot exchange rate as of the occurrence date of cash flow isadopted for conversion of foreign currency cash flow. The amount of cash affected by exchangerate movement shall be listed separately in cash flow statement.
11. Financial assets and liabilities
A financial asset or liability is recognized when the group becomes a party to a financialinstrument contract. The financial assets and financial liabilities are measured at fair value oninitial recognition. For the financial assets and liabilities measured by fair value and with variationreckoned into current gains/losses, the related transaction expenses are directly included in currentgains or losses; for other types of financial assets and liabilities, the related transaction costs areincluded in the initial recognition amount.
(1) Method for determining the fair value of financial assets and financial liabilitiesFair value refers to the price that a market participant can get by selling an asset or has to pay fortransferring a liability in an orderly transaction that occurs on the measurement date. For afinancial instrument having an active market, the Company uses the quoted prices in the activemarket to determine its fair value. Quotations in an active market refer to prices that are readily
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2024 to December 31, 2024（Unless other wise specified, RMB for record in the statement)
available from exchanges, brokers, industry associations, pricing services, etc., and represent theprices of market transactions that actually occur in an arm's length transaction. If there is no activemarket for a financial instrument, the Company uses valuation techniques to determine its fairvalue. Valuation techniques include reference to prices used in recent market transactions byparties familiar with the situation and through voluntary trade, and reference to current fair valuesof other financial instruments that are substantially identical, discounted cash flow methods, andoption pricing models.
(2) Category and measurement on financial assets
The group divided the financial assets as the follow while initially recognized: the financial assetsmeasured at amortized cost; the financial assets measured at fair value and whose changes areincluded in other comprehensive income; and the financial assets measured by fair value and withvariation reckoned into current gains/losses. The classification of financial assets depends on thebusiness model that the Group's enterprises manage the financial assets and the cash flowcharacteristics of the financial assets.
1) The financial assets measured at amortized cost
Financial assets are classified as financial assets measured at amortized cost when they also meetthe following conditions: The group's business model for managing the financial assets is tocollect contractual cash flows; the contractual terms of the financial assets stipulate that cash flowgenerated on a specific date is only paid for the principal and interest based on the outstandingprincipal amount. For such financial assets, the effective interest method is used for subsequentmeasurement according to the amortized cost, and the gains or losses arising from amortization orimpairment are included in current profits and losses. Such financial assets mainly includemonetary funds, notes receivable, accounts receivable, other receivables, debt investment andlong-term receivables, and so on. The Group lists the debt investment and long-term receivablesdue within one year (including one year) from the balance sheet date as non-current assets duewithin one year, and lists the debt investment with time limit within one year (including one year)when acquired as other current assets.
2) Financial assets measured at fair value and whose changes are included in other comprehensiveincomeFinancial assets are classified as financial assets measured at fair value and whose changes areincluded in other comprehensive income when they also meet the following conditions: TheGroup's business model for managing the financial assets is targeted at both the collection ofcontractual cash flows and the sale of financial assets; the contractual terms of the financial assetstipulate that the cash flow generated on a specific date is only the payment of the principal andthe interest based on the outstanding principal amount. For such financial assets, fair value is usedfor subsequent measurement. The discount or premium is amortized by using the effective interestmethod and is recognized as interest income or expenses. Except the impairment losses and theexchange differences of foreign currency monetary financial assets are recognized as the currentprofits and losses, the changes in the fair value of such financial assets are recognized as othercomprehensive income until the financial assets are derecognized, the accumulated gains or lossesare transferred to the current profits and losses. Interest income related to such financial assets isincluded in the current profit and loss. Such financial assets are listed as other debt investments,other debt investments due within one year (including one year) from the balance sheet date arelisted as non-current assets due within one year; and other debt investments with time limit within
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2024 to December 31, 2024（Unless other wise specified, RMB for record in the statement)
one year (including one year) when acquired are listed as other current assets.
3) Financial assets measured at fair value and whose changes are included in current gains/lossesFinancial assets except for the above-mentioned financial assets measured at amortized cost andfinancial assets measured at fair value and whose changes are included in other comprehensiveincome are classified as financial assets measured at fair value and whose changes are included incurrent profits and losses, which adopt fair value for subsequent measurement and all changes infair value are included in current profits and losses. The Group classifies non-trading equityinstruments as financial assets measured at fair value and whose changes are included in currentprofits and losses. Such financial assets are presented as trading financial assets, and those expireafter more than one year and are expected to be held for more than one year are presented as othernon-current financial assets.
(3) Devaluation of financial instrument
On the basis of expected credit losses, the Group performs impairment treatment on financialassets measured at amortized cost and financial assets measured at fair value and whose changesare included in other comprehensive income and recognize the provisions for loss.Credit loss refers to the difference between all contractual cash flows that the Company discountsat the original actual interest rate and are receivable in accordance with contract and all cash flowsexpected to be received, that is, the present value of all cash shortages. Among them, for thepurchase or source of financial assets that have suffered credit impairment, the Companydiscounts the financial assets at the actual interest rate adjusted by credit.The Group considers all reasonable and evidenced information, including forward-lookinginformation, based on credit risk characteristics. When assessing the expected credit losses ofreceivables, they are classified according to the specific credit risk characteristics as follows:
1) For receivables and contractual assets and lease receivables (including significant financingcomponents and not including significant financing components), the Group measures theprovisions for loss based on the amount of expected credit losses equivalent to the entire duration.
①Evaluate expected credit losses based on individual items: credit notes receivable (includingaccepted letters of credit) of financial institutions in notes receivable and accounts receivable, andrelated party payments (related parties under the same control and significant related parties);dividends receivable, interest receivable, reserve funds, investment loans, cash deposits (includingwarranty), government grants (including dismantling subsidies) in other receivables, andreceivables with significant financing components (i.e. long-term receivables);
②The Group considers all reasonable and evidenced information, including forward-lookinginformation, when assessing expected credit losses. When there is objective evidence that itscustomer credit characteristics and ageing combination cannot reasonably reflect its expectedcredit loss, the current value of the expected future cash flow is measured by a single item, and the
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2024 to December 31, 2024（Unless other wise specified, RMB for record in the statement)
cash flow shortage is directly written down the book balance of the financial asset.The Group considers all reasonable and evidenced information, including forward-lookinginformation, when assessing expected credit losses. When there is objective evidence that itscustomer credit characteristics and ageing combination cannot reasonably reflect its expectedcredit loss, the current value of the expected future cash flow is measured by a single item, and thecash flow shortage is directly written down the book balance of the financial asset.
2) Assess the expected credit losses on a case-by-case basis for other assets to which the financialinstruments are impaired, such as the loan commitments and financial guarantee contracts that arenot measured at fair value through profit or loss, financial assets measured at fair value and whosechanges are recognized in other comprehensive income; other financial assets measured atamortized cost (such as other current assets, other non-current financial assets, etc.).
(4) Reorganization basis and measure method for transfer of financial assets
The financial assets meet one of following requirements will be terminated recognition: ① Thecontract rights of collecting cash flow of the financial assets is terminated; ②The financial assetshas already been transferred, and the Company has transferred almost all risks and remunerationsof financial assets ownership to the transferee; ③The financial assets has been transferred, eventhough the Company has neither transferred nor kept almost all risks and remunerations offinancial assets ownership, the Company has given up controlling the financial assets.If the enterprise has neither transferred or kept almost all risks and remunerations of financialassets ownership, nor given up controlling the financial assets, then confirm the relevant financialassets according to how it continues to involve into the transferred financial assets and confirm therelevant liabilities accordingly. The extent of continuing involvement in the transferred financialassets refers to the level of risk arising from the changes in financial assets value faced by theenterprise.If the entire transfer of financial assets satisfies the demand for derecognition, reckon the balancebetween the book value of the transferred financial assets and the sum of consideration receivedfrom transfer and fluctuation accumulated amount of fair value formerly reckoned in otherconsolidated income in the current profits and losses.
If part transfer of financial assets satisfies the demand for derecognition, apportion the integralbook value of the transferred financial assets between the derecognized parts and the parts not yetderecognized according to each relative fair value, and reckon the balance between the sum ofconsideration received from transfer and fluctuation accumulated amount of fair value formerlyreckoned in other consolidated income that should be apportioned to the derecognized parts andthe apportioned aforementioned carrying amounts in the current profits and losses.
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2024 to December 31, 2024（Unless other wise specified, RMB for record in the statement)
When the Group sells financial assets adopting the mode of recourse, or endorses and transfers itsfinancial assets, it is necessary to ensure whether almost all the risks and rewards of ownership ofthe financial assets have been transferred. If almost all the risks and rewards of ownership of thefinancial assets have been transferred to the transferee, the financial assets shall be derecognized;if almost all the risks and rewards of ownership of the financial assets are retained, the financialassets shall not be derecognized; if almost all the risks and rewards of ownership of the financialassets are neither transferred nor retained, continue to judge whether the company retains controlover the assets, and conduct accounting treatment according to the principles described in thepreceding paragraphs.
(5) Category and measurement of financial liability
Financial liability is classified into financial liability measured by fair value and with variationreckoned into current gains/losses and other financial liability at initially measurement.
① the financial liability measured by fair value and with variation reckoned into currentgains/lossesThe conditions to be classified as trading financial liabilities and as financial liabilities designatedto be measured at fair value and whose changes are included in current profit or loss at the initialrecognition are consistent with the conditions to be classified as trading financial assets and asfinancial assets designated to be measured at fair value and whose changes are included in currentprofit or loss at the initial recognition. Financial liabilities measured at fair value and whosechanges are included in current profit or loss are subsequently measured at fair value, and the gainor loss arising from changes in fair value and the dividends and interest expense related to thesefinancial liabilities are included in current profit or loss.
② Other financial liability
It must go through the delivery of the derivative financial liabilities settled by the equityinstrument to link to the equity instruments that are not quoted in an active market and whose fairvalue cannot be reliably measured, and the subsequent measurement is carried out in accordancewith the cost. Other financial liabilities are subsequently measured at amortized cost by using theeffective interest method. The gain or loss arising from derecognition or amortization is includedin current profit or loss.
③Financial guarantee contract
The financial guarantee contract of a financial liability which is not designated to be measured atfair value through profit or loss is initially recognized at fair value, and its subsequentmeasurement is carried out by the higher one between the amount confirmed in accordance with
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2024 to December 31, 2024（Unless other wise specified, RMB for record in the statement)
the Accounting Standards for Business Enterprises No. 13 — Contingencies after initialrecognition and the balance after deducting the accumulated amortization amount determined inaccordance with the principle of Accounting Standards for Business Enterprises No. 14—Revenuefrom the initial recognition amount.
(6) Termination of recognition of financial liability
The financial liability or part of it can only be terminated for recognized when all or part of thecurrent obligation of the financial liability has been discharged. The Group (debtor) and thecreditor sign an agreement to replace the existing financial liabilities with new financial liabilities,and if the contract terms of the new financial liabilities are substantially different from the existingfinancial liabilities, terminated for recognized the existing financial liabilities and at the same timerecognize the new financial liabilities. If the financial liability is terminated for recognized inwhole or in part, the difference between the carrying amount of the part that terminated forrecognized and the consideration paid (including the transferred non-cash assets or the assumednew financial liabilities) is included in current profits and losses.
(7) Off-set between the financial assets and liabilities
When the Company has a legal right to offset a recognized financial asset and a financialliability and such legal right is currently enforceable, and the Company plans to settle the financialasset on a net basis or to realize the financial asset and settle the financial liability simultaneously,the financial asset and the financial liability are presented in the balance sheet at their respectiveoffsetting amounts. In addition, the financial assets and financial liabilities are presented in thebalance sheet separately, and are not offset against each other.
(8) Derivatives and embedded derivatives
Derivatives are initially measured at fair value on the signing date of the relevant contract, and aresubsequently measured at fair value. Except for derivatives that are designated as hedginginstruments and are highly effective in hedging, the gains or losses arising from changes in fairvalue will be determined based on the nature of the hedging relationship in accordance with therequirements of the hedge accounting and be included in the period of profit and loss, otherchanges in fair value of derivatives are included in current profits and losses. For a hybridinstrument that includes an embedded derivative, if it is not designated as a financial asset orfinancial liability measured at fair value and whose changes are included in current profit or loss,the embedded derivative does not have a close relationship with the main contract in terms ofeconomic characteristics and risks, and as with embedded derivatives, if the tools existing
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2024 to December 31, 2024（Unless other wise specified, RMB for record in the statement)
separately conform to the definition of the derivatives, the embedded derivatives are split from thehybrid instruments and are treated as separate derivative financial instruments. If it is not possibleto measure the embedded derivative separately at the time of acquisition or subsequent balancesheet date, the whole hybrid instrument is designated as a financial asset or financial liabilitymeasured at fair value and whose changes are included in current profits and losses.
(9) Equity instrument
The equity instrument is the contract to prove the holding of the surplus stock of the assets withthe deduction of all liabilities in the Group. The Company issues (including refinancing),repurchases, sells or cancels equity instruments as movement of equity. No fair value change ofequity instrument would be recognized by the Company. Transaction costs associated with equitytransactions are deducted from equity. The Group's various distributions to equity instrumentholders (excluding stock dividends) reduce shareholders' equity.
12. Inventory
Inventories of the Company principally include raw materials, stock goods; work in process,self-made semi-finished product, materials consigned to precede, low-value consumption goods,goods in transit, goods in process, mould and contract performance costs.Perpetual inventory system is applicable to inventories. For daily calculation, standard price isadopted for raw materials, low-value consumption goods and stock goods. Switch-back cost of thecurrent month is adjusted by distribution price difference at the end of the month, the dispatchedgoods will share the cost differences of inventory while in settlement the business income; andlow-value consumption goods is carried forward at once when being applied for use and themould shall be amortized within one year after receipt.Inventory at period-end is valued by the Lower-of-value between the cost and net realizable value.The provision for inventory depreciation shall be drawn from the difference between the book costof a single inventory item and its net realizable value, and the provision for inventory depreciationshall be recorded into the current profit and loss.
13. Contract assets
(1) Confirmation methods and standards of contract assets
Contract assets refer to the right of the Company to receive consideration after transferring goodsto customers, and this right depends on factors other than the passage of time. If the Companysells two clearly distinguishable commodities to a customer and has the right to receive paymentbecause one of the commodities has been delivered, but the payment is also dependent on the
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2024 to December 31, 2024（Unless other wise specified, RMB for record in the statement)
delivery of the other commodity, the Company shall take the right to receive payment as a contractasset.
(2) Determination method and accounting treatment method of expected credit loss of contractassetsFor the determination method for expected credit loss of contract assets, please refer to theabove-mentionedAccounting treatment methods for financial instrument impairment. The Company calculates theexpected credit loss of contract assets on the balance sheet date, if the expected credit loss isgreater than the book value of provision for impairment of contract assets, the Company shallrecognize the difference as an impairment loss, debiting the "asset impairment loss" and creditingthe "contract asset impairment provision". On the contrary, the Company shall recognize thedifference as an impairment gain and keep the opposite accounting records.If the Company actually incurs credit losses and determines that the relevant contract assets cannotbe recovered, for those approved to be written off, debit the "contract asset impairment reserve"and credit the "contracted asset" based on the approved write-off amount. If the written-offamount is greater than the provision for loss that has been withdrawn, the "asset impairment loss"is debited based on the difference.
14. Contract cost
(1) The method of determining the amount of assets related to the contract cost
The Company’s assets related to contract costs include contract performance cost and contractacquisition cost.The contract performance cost is the cost incurred by the Company for the performance of thecontract, those that do not fall within the scope of other accounting standards and meet thefollowing conditions at the same time are recognized as as an asset as the contract performancecost: the cost is directly related to a current or expected contract, including direct labor, directmaterials, manufacturing expenses (or similar expenses), costs clarified to be borne by thecustomer, and other costs incurred solely due to the contract; this cost increases the Company'sfuture resources for fulfilling the contract's performance obligations; this cost is expected to berecovered.Contract acquisition cost is the incremental cost incurred by the Company to obtain the contract,those that are expected to be recovered are recognized as the contract acquisition cost as an asset;if the asset amortization period does not exceed one year, it shall be included in the current profitand loss when it occurs. Incremental cost refers to the cost (such as sales commission, etc.) thatwill not incur if the Company doesn’t obtain the contract. The Company’s expenses (such as travel
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2024 to December 31, 2024（Unless other wise specified, RMB for record in the statement)
expenses incurred regardless of whether the contract is obtained) incurred for obtaining thecontract other than the incremental costs expected to be recovered are included in the currentprofits and losses when they are incurred, except those are clarified to be borne by the customer.
(2) Amortization of assets related to contract costs
The Company’s assets related to contract costs are amortized on the same basis as the recognitionof commodity income related to the asset and included in the current profit and loss.
(3) Impairment of assets related to contract costs
When the Company determines the impairment loss of assets related to the contract cost, it firstdetermines the impairment loss of other assets related to the contract that are confirmed inaccordance with other relevant accounting standards for business enterprises; then based on thedifference between the book value of which is higher than the remaining consideration that theCompany is expected to obtain due to the transfer of the commodity related to the asset and theestimated cost of transferring the related commodity, the excess shall be provided for impairmentand recognized as an asset impairment loss.If the depreciation factors of the previous period changed later, causing the aforementioneddifference to be higher than the book value of the asset, the original provision for asset impairmentshall be reversed and included in the current profit and loss, but the book value of the asset afterthe reversal shall not exceed the book value of the asset on the reversal date under the assumptionthat no impairment provision is made.
15.Long-term equity investment
Long-term equity investment of the Company is mainly about investment in subsidiary,investment in associates and investment in joint-ventures.For long-term equity investments acquired through business combination under common control,the initial investment cost shall be the acquirer’s share of the carrying amount of net assets of theacquiree as of the combination date as reflected in the consolidated financial statement of theultimate controller. If the carrying amount of net assets of the acquiree as of the combination dateis negative, the investment cost of long-term equity investment shall be zero. For long-term equityinvestment acquired through business combination not under common control, the initialinvestment cost shall be the combination cost.
Excluding the long-term equity investment acquired through business combination, there is also aking of long-term equity investment acquired through cash payment, for which the actual paymentfor the purchase shall be investment cost; If Long-term equity investments are acquired by issuingequity securities, fair value of issuing equity investment shall be investment cost; for Long-term
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2024 to December 31, 2024（Unless other wise specified, RMB for record in the statement)
equity investments which are invested by investors, the agreed price in investment contract oragreement shall be investment cost; and for long-term equity investment which is acquiredthrough debt reorganization and non-monetary assets exchange, regulations of relevant accountingstandards shall be referred to for confirming investment cost.The Company adopts cost method for investment in subsidiaries, makes calculation forinvestments in joint-ventures and associates by equity method.When calculated by cost method, long-term equity investment is priced according to itsinvestment cost, and cost of the investment is adjusted when making additional investment orwriting off investment; When calculated by equity method, current investment gains and lossesrepresent the proportion of the net gains and losses realized by the invested unit in current yearattributable to or undertaken by the investor. When the Company is believed to enjoy proportionof net gains and losses of invested unit, gains and losses attributable to the Company according toits shareholding ratio is to computer out according to the accounting policy and accounting periodof the Company, on the basis of the fair value of various recognizable assets of the invested unit asat the date of obtaining of the investment, after offset of gains and losses arising from internaltransactions with associates and joint-ventures, and finally to make confirmation after adjustmentof net profit of the invested unit. Confirmation on gains and losses from the long-term equityinvestment in associates and joint-ventures held by the Company prior to the first execution day,could only stand up with the precedent condition that debit balance of equity investment straightlyamortized according to its original remaining term has already been deducted, if theaforementioned balance relating to the investment do exist.In case that investor loses joint control or significant influence over investee due to disposal ofpart equity interest investment, the remaining equity interest shall be calculated according toAccounting Standards for Business Enterprise No.22-Recognition and Measurement of FinancialInstrument. Difference between the fair value of the remaining equity interest as of the date whenloss of joint control or significant influence and the carrying value is included in current gains andlosses. Other comprehensive income recognized in respect of the original equity interestinvestment under equity method should be treated according to the same basis which the investeeadopts to directly dispose the relevant assets or liabilities when ceasing adoption of equity methodcalculation; and also switches to cost method for calculating the long-term equity investmentswhich entitles the Company to have conduct control over the invested units due to its additionalinvestments; and switches to equity method for calculating the long-term equity investmentswhich entitles the Company to conduct common control or significant influence, while no controlover the invested units due to its additional investments, or the long-term equity investmentswhich entitles the Company with no control over the invested units any longer while with
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2024 to December 31, 2024（Unless other wise specified, RMB for record in the statement)
common control or significant influence.When disposing long-term equity investment, the balance between it carrying value and effectiveprice for obtaining shall be recorded into current investment income. When disposing long-termequity investment which is calculated by equity method, the proportion originally recorded inowners’ equity shall be transferred to current investment income according to relevant ratio,except for that other movements of owners’ equity excluding net gains and losses of the investedunits shall be recorded into owners’ equity
16. Investment real estate
The investment real estate of the Company includes leased houses and buildings, and is accountedvalue by its cost. Cost of purchased-in investment real estate consists of payment for purchase,relevant taxes and other expenditure which is attributable to the assets directly; while cost ofself-built investment real estate is formed with all necessary expenditures occurred beforeconstruction completion of the assets arriving at the estimated utilization state.Consequent measurement of investment estate shall be measured by cost method. Depreciation isprovided with average service life method pursuant to the predicted service life and net rate ofsalvage value. The predicted service life and net rate of salvage value and annual depreciation arelisted as follows:
| Category | Depreciation term(Year) | Predicted rate of salvage value (%) | Depreciation rate per annual (%) |
| House and buildings | 30-40 years | 4.00-5.00 | 2.375-3.20 |
When investment real estate turns to be used by holders, it shall switch to fixed assets orintangible assets commencing from the date of such turning. And when self-used real estate turnsto be leased out for rental or additional capital, the fixed assets or intangible assets shall switch toinvestment real estate commencing from the date of such turning. In situation of switch, thecarrying value before the switch shall be deemed as the credit value after the switch.When investment real estate is disposed, or out of utilization forever and no economic benefitwould be predicted to obtain through the disposal, the Company shall terminate recognition ofsuch investment real estate. The amount of income from disposal, transfer, discarding as scrap ordamage of investment real estate after deducting the asset’ s carrying value and relevant taxationshall be written into current gains and losses.
17.Fixed assets
Fixed assets of the Company are tangible assets that are also held for the production of goods,provision of services, rental or management of operations, have a useful life of more than one yearand have a unit value of more than 2,000 yuan.Their credit value is determined on the basis of the cost taken for obtaining them. Of which, costof purchased-in fixed assets include bidding price and import duty and relevant taxes, and otherexpenditure which occurs before the fixed assets arrive at the state of predicted utilization and
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2024 to December 31, 2024（Unless other wise specified, RMB for record in the statement)
which could be directly attributable to the assets; while cost of self-built fixed asset is formed withall necessary expenditures occurred before construction completion of the assets arriving at theestimated utilization state; credit value of the fixed assets injected by investors is determinedbased on the agreed value of investment contracts or agreements, while as for the agreed value ofinvestment contracts or agreements which is not fair, it shall take its fair value as credit value; andfor fixed assets which are leased in through finance leasing, credit value is the lower of fair valueof leased assets and present value of minimized leasing payment as at the commencing date ofleasing.Consequent expenditure related to fixed assets consists of expenditures for repair and updatereform. For those meeting requirements for recognization of fixed assets, they would be accountedas fixed asset cost; and for the part which is replaced, recognization of its carrying value shallcease; for those not meeting requirements for recognization of fixed assets, they shall beaccounted in current gains and losses as long as they occur. When fixed asset is disposed, or noeconomic benefit would be predicted to obtain through utilization or disposal of the asset, theCompany shall terminate recognization of such fixed asset. The amount of income from disposal,transfer, discarding as scrap or damage of fixed asset after deducting the asset’ s carrying valueand relevant taxation shall be written into current gains and losses.The Company withdraws depreciation for all fixed assets except for those which have been fullydepreciated while continuing to use. It adopts average service life method for withdrawingdepreciation which is treated respectively as cost or current expense of relevant assets according topurpose of use. The depreciation term, predicted rate of salvage value and depreciation rateapplied to fixed assets of the Company are as follows:
| Category | Depreciation term | Predicted rate of salvage value | Depreciation rate per year |
| House and buildings | 30-40 years | 4%-5% | 2.375%-3.20% |
| Machinery equipment | 10-14 years | 4%-5% | 6.786%-9.60% |
| Transport equipment | 5-12 years | 4%-5% | 7.92%-19.20% |
| Other equipment | 8-12 years | 4%-5% | 7.92%-12.00% |
End of each year, the Company makes re-examination on predicted service life, predicted rate ofsalvage value and depreciation method at each year-end. Any change will be treated as accountingestimation change.
18. Construction in progress
On the day when the construction in progress reaches the expected usable state, it will be carriedforward to fixed assets according to the estimated value based on the construction budget, cost oractual construction cost, and depreciation will be accrued from the next month, and the differencein the original value of fixed assets shall be adjusted after the completion of the final accountingprocedures.
19. Borrowing expense
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2024 to December 31, 2024（Unless other wise specified, RMB for record in the statement)
For the incurred borrowing expense that can be directly attributable to fixed assets, investmentreal estate, and inventory which require more than one year of purchase, construction orproduction activities to reach the intended usable or saleable state, the capitalization begins whenthe asset expenditure has occurred, the borrowing expense have occurred, and the acquisition,construction or production activities necessary to make the asset reach the intended usable orsaleable state have begun; when the acquisition, construction or production of assets that meet thecapitalization conditions reaches the intended usable or saleable state, stop the capitalization, theborrowing expense incurred thereafter are included in the current profit and loss. If an asset thatmeets the capitalization conditions is abnormally interrupted during the acquisition, constructionor production process, and the interruption lasts for more than 3 months, the capitalization ofborrowing expense shall be suspended until the acquisition, construction or production activitiesof the asset restart.
Capitalization shall be exercised for interest expense actually occurred from special borrowings incurrent period after deduction of the interest income arising from unutilized borrowing capitalwhich is saved in banks or deduction of investment income obtained from temporary investment;For recognization of capitalized amount of common borrowing, it equals to the weighted averageof the assets whose accumulated expense or capital disburse is more than common borrowingtimes capitalization rate of occupied common borrowing. Capitalization rate is determinedaccording to weighted average interest rate of common borrowing.
20. Right-of-use assets
Upon becoming a lessee under a lease contract, the Company is entitled to receive substantially allof the economic benefits, arising from the use of the identified assets during the period of use andis entitled to recognized the right-of-use assets at the sum of the present value of the lease liability,prepaid rent and initial direct costs, and to recognized the depreciation and interest expensesrespectively, when the use of the identified assets dominates during that period of use.When the Company becomes the lessee of a lease contract, for short-term leases of less than oneyear without a purchase option and leases with a value of less than 40000 yuan (excludingsublease or expected sublease assets), the Company elects to follow simplified treatment andrecord the related assets at cost or current gain/loss on a straight-line basis over the lease period.
21. Intangible assets
(1) Valuation method, service life and impairment test
The Company’s intangible assets include land use rights, trademark rights and non-proprietarytechnology, which are measured at actual cost at the time of acquisition, of which, acquiredintangible assets are stated at actual cost based on the price actually paid and related other
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2024 to December 31, 2024（Unless other wise specified, RMB for record in the statement)
expenditure; the actual cost of an intangible asset invested by an investor is determined at thevalue agreed in the investment contract or agreement, except where the agreed value in thecontract or agreement is not fair, in which case the actual cost is determined at fair value.The Company analyzes and judges the service life of intangible assets when acquiring them.Intangible assets with definite service life, such as land use rights, are amortized by thestraight-line method during the service life from the time when the intangible assets are availablefor use until they are no longer recognized as intangible assets. Other intangible assets shall beamortized according to the service life stipulated in the contract or law. Intangible assets withuncertain service life shall not be amortized. Intangible assets developed by the Company shall begenerally amortized on an average of 3-5 years according to the benefit period of the results of theproject recognized in advance.The service life and amortization method of intangible assets with limited service life shall bereviewed at the end of the year. If the estimated service life and amortization method of intangibleassets are different from those previously estimated, the amortization period and amortizationmethod shall be changed. The service life of intangible assets with uncertain service life shall berechecked. If there is evidence that their service life is limited, estimate their service life and treatthem as intangible assets with limited service life. If there is any change after the recheck, it willbe regarded as the change of accounting estimate.
(2) Collection scope of R&D expenditure and related accounting treatment methodsThe Company's R&D expenditure is directly related to the Company's R&D activities, includingR&D staff salaries, direct input expenses, depreciation expenses and other expenses.The R&D expenditure of the Company is divided into research stage expenditure anddevelopment stage expenditure according to its nature and whether there is great uncertainty in thefinal formation of intangible assets from R&D activities. Research stage expenditure is included inthe current profits and losses when it occurs; Development stage expenditure is recognized asintangible assets if it meets the following conditions at the same time: (1) It is technically feasibleto complete the intangible assets so that they can be used or sold; (2) It has the intention tocomplete the intangible assets and use or sell them; (3) The products produced by using theintangible assets exist in the market or the intangible assets themselves exist in the market; (4) Ithas sufficient technical, financial and other resources to support the development of the intangibleassets, and has the ability to use or sell the intangible assets; (5) Expenditure attributable to thedevelopment stage of the intangible assets can be reliably measured.
-Expenditure attributable to development of the intangible assets could be reliable measured.Expenditure arising during development not satisfying the above conditions shall be recorded in current gains andlosses upon occurrence. Development expenditure which had been recorded in gains and losses in previous period
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2024 to December 31, 2024（Unless other wise specified, RMB for record in the statement)
would not be recognized as assets in later period. Expenditure arising during development phase which has beenstarting capitalization is listed in balance sheet as development expenditure, and transferred to intangible assetssince the project reaches at predicted utilization state.
22. Impairment of long-term assets
As at each balance sheet date, the Company has inspection on fixed assets, construction in processand intangible assets with limited service life. When the following indications appear, assets maybe impaired, and the Company would have impairment test. As for goodwill and intangible assetswhich have uncertain service life, no matter there is impairment or not, impairment test shall beconducted at the end of every year. If it is hard to make test on recoverable amount of single asset,test is expected to make on the basis of the assets group or assets group portfolio where such assetbelongs to.Indications for impairment are as follows:
(1) Market value of asset drops a lot in current period, the drop scope is obviously greater than thepredicted drop due to move-on of times or normal utilization;
(2) Economy, technology or law environment where enterprise operates or market where asset islocated will have significant change in current or recent periods, which brings negative influenceto enterprise;
(3) Market interest rate or returning rate of other market investments have risen in current period,which brings influence in calculating discount rate of present value of predicted future cash flowof assets, which leads to a great drop in recoverable amount of such assets;
(4) Evidence proving that asset is obsolete and out of time or its entity has been damaged;
(5) Asset has been or will be keep aside, terminating utilization or disposed advance;
(6) Internal report of enterprise shows that economic performance of asset has been or will belower than prediction, such as that net cash flow created by asset or operation profit (or loss)realized by asset is greatly lower (or higher) than the predicted amount;
(7) Other indications showing possible impairment of assets
After impairment test, if the carrying value exceeds the recoverable amount of the asset, thebalance is recognized as impairment loss. As long as impairment loss of the aforementioned assetsis recognized, it couldn’t be switched back in later accounting periods. Recoverable amount ofassets refers to the higher of fair value of assets net disposal expense and present value ofpredicted cash flow of the asset.
23. Contract liability
Contract liabilities reflect the Company's obligation to transfer goods to customers forconsideration received or receivable from customers. Before the Company transfers the goods tothe customer, if the customer has paid the contract consideration or the Company has obtained theright to unconditionally receive the contract consideration, the contract liability is recognizedbased on the received or receivable amount at the earlier time point of the actual payment by thecustomer and the payment due.
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2024 to December 31, 2024（Unless other wise specified, RMB for record in the statement)
24. Goodwill
Goodwill represents balance between equity investment cost or business combination cost underno common control exceeding the attributable part or fair value of recognizable net assets of partyinvested or purchased (obtained through business combination) as of acquisition day or purchaseday.
Goodwill relating to subsidiaries is separately listed in consolidated financial statement. Andgoodwill relating to associates and joint-ventures is included in carrying value of long-term equityinvestment.
25.Long-term deferred expenses
The company's long-term deferred expenses refer to the expenses that have been paid, but shouldbe borne by the current period and future periods with an amortization period of more than oneyear (excluding one year), and these expenses are amortized evenly during the benefit period. Ifthe long-term deferred expense item cannot benefit the future accounting period, all the amortizedvalue of the item that has not been amortized will be transferred into the current profit and loss.
26. Staff remuneration
Employee benefits mainly include all kinds of remuneration incurred in exchange for servicesrendered by employees or compensation to the termination of employment relationship such asshort-term wages, post-employment benefits, compensation for the termination of employmentrelationship and other long-term employee welfare.Short-term remuneration includes: staff salary, bonus, allowances and subsidies, staff benefits,social insurances like medical insurance, work-related injury insurance and maternity insurance,housing fund, labor union funds and staff education funds, short-term paid absence of duty,short-term profit sharing scheme, and non-monetary benefits as well as other short-termremuneration. During the accounting period when staff provides services, the short-termremuneration actually occurred is recognized as liabilities and shall be included in current gainsand losses or related asset costs according to the beneficial items.
Retirement benefits mainly consist of basic pension insurance, unemployment insurance andearly-retirement benefits, etc. retirement benefit scheme represents the agreement reached by theCompany and its employees in respect of retirement benefits, or the rules or regulationsestablished by the Company for providing retirement benefits to employees. In particular, definedcontribution plan means a retirement benefit plan, pursuant to which, the Company makes fixedcontribution to independent fund, upon which, and it is not obliged to make further payment.
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2024 to December 31, 2024（Unless other wise specified, RMB for record in the statement)
Defined benefit plan refers to retirement benefit scheme other than defined contribution plan.The early retirement policy for staff and workers of the Company is the compensation forencouraging staff and workers to accept the reduction voluntarily. The employees makeapplications voluntarily, the two parties sign the compensation agreement after approved by theCompany and calculate the compensation amount according to the compensation standard passedby the staff representative conference, and the Company confirms it as dismiss welfare andreckons it in current profits and losses. As the Company promises to adjust the treatment for earlyretiring staff and workers with the increase of social basic cost of living allowances, the discountelements will not be considered for calculating the dismiss welfare.
27.Lease liability
Upon becoming a lessee under a lease contract, the Company recognizes a lease liability for theleased-in asset at the present value of the unpaid lease payments, net of lease incentives (exceptfor short-term leases and leases of low-value assets for which simplified treatment is elected),when it is entitled to receive substantially all of the economic benefits arising from the use of theidentified asset during the period of use and is entitled to dominate the use of the identified assetduring that period of use.
28.Accrual liability
If the business in connection with such contingencies as a security involving a foreign party,commercial acceptance bill discount, pending litigation or arbitration, product quality assurance,etc. meets all of the following conditions, the Company will confirm the aforesaid as liabilities:
the obligation is an existing obligation of the Company; performance of the obligation is likely tocause economic benefits to flow out of the enterprise; the amount of the obligation is reliablymeasurable.
29. Special reserve
The work safety expense extracted according to the regulations will be included in the cost ofrelated products or the current profit and loss, and also included in the special reserve; When used,it will be treated separately according to whether fixed assets are formed or not: if it is an expenseexpenditure, the special reserve will be directly offset; If the fixed assets are formed, the expensesincurred shall be collected, and the fixed assets shall be confirmed when the predetermined usablestate is reached, and at the same time, the equivalent special reserve shall be offset and theequivalent accumulated depreciation shall be confirmed.
30. Revenue
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2024 to December 31, 2024（Unless other wise specified, RMB for record in the statement)
The Company’s sales revenue is mainly comprised of revenue from sale of goods, labor providingincome and revenue from assignment of asset use rights.The Company has fulfilled the performance obligations in the contract, that is, revenue isrecognized when the customer obtains control of the relevant goods or services.If the contract contains two or more performance obligations, the Company will allocate thetransaction price to each individual performance obligation according to the relative proportion ofthe stand-alone selling price of the goods or services promised by each individual performanceobligation on the date of the contract. The revenue is measured according to the transaction priceof each individual performance obligation.
The transaction price is the amount of consideration that the Company expects to be entitled toreceive due to the transfer of goods or services to customers, excluding payments on behalf ofthird parties. The transaction price confirmed by the Company does not exceed the amount atwhich the cumulatively recognized revenue will most likely not to undergo a significant switchback when the relevant uncertainty is eliminated. The money expected to be returned to thecustomer will be regarded as a return liability and not included in the transaction price. If there is asignificant financing component in the contract, the Company shall determine the transaction pricebased on the amount payable on the assumption that the customer pays in cash when obtaining thecontrol of the goods or services. The difference between the transaction price and the contractconsideration shall be amortized by the effective interest method during the contract period. Onthe starting date of the contract, if the Company expects that the interval between the customer'sacquisition of control of the goods or services and the customer's payment of the price doesn’texceed one year, the significant financing components in the contract shall be ruled out.
When meeting one of the following conditions, the Company is to perform its performanceobligations within a certain period of time, otherwise, it is to perform its performance obligationsat a certain point in time:
1) The customer obtains and consumes the economic benefits brought by the Company'sperformance at the same time as the Company's performance;
2) Customers can control the products under construction during the performance of theCompany;
3) The goods produced by the Company during the performance of the contract have irreplaceableuses, and the Company has the right to collect payment for the accumulated performance part ofthe contract during the entire contract period.For performance obligations performed within a certain period of time, the Company recognizes
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2024 to December 31, 2024（Unless other wise specified, RMB for record in the statement)
revenue in accordance with the performance progress during that period and determine theprogress of performance in accordance with the output method. When the performance progresscannot be reasonably determined, if the cost incurred by the Company is expected to becompensated, the revenue shall be recognized according to the amount of the cost incurred untilthe performance progress can be reasonably determined.For performance obligations performed at a certain point in time, the Company recognizesrevenue at the point when the customer obtains control of the relevant goods or services. Whenjudging whether a customer has obtained control of goods or services, the Company will considerthe following signs:
1) The Company has the current right to collect payment for the goods or services;
2) The Company has transferred the goods in kind to the customer;
3) The Company has physically transferred the goods to the customer;
4) The Company has transferred the principal risks and rewards of ownership of the goods to thecustomer;
5) The customer has accepted the goods or services, etc.
The Company’s right to receive consideration for goods or services that have been transferred tocustomers are presented as contractual assets, which are impaired on the basis of expected creditlosses. The Company’s unconditional right to receive consideration from customers is shown as aaccount receivable. The obligation to transfer goods or services to customers for which theCompany has received consideration receivable from them is shown as a contractual liability.Specific methods of income recognition:
1. Income from transfer of commodities
For the commodities sold between the Company and customers, income is usually recognizedat the time when the control right of the commodities is transferred, based on comprehensiveconsideration of the factors such as obtaining the current right to collect the commodity payment,the transfer of the main risks and rewards in the ownership of the commodities, the transfer of thelegal ownership of the commodities, the transfer of the physical assets of the commodities, and theacceptance of the commodities by the customers. For the goods picked up by the merchantsthemselves, the income is recognized when the goods are picked up; For the goods delivered bylogistics, the income is recognized when the goods are delivered at the merchant for signing; For thesales business with consignment characteristics, according to the contract, the income is recognizedwhen the merchant provides the commodity settlement list; For the sales business through onlinesales channels, when the commodities are delivered to customers for receipt, it is regarded as the
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2024 to December 31, 2024（Unless other wise specified, RMB for record in the statement)
main risk and rewards on the ownership of the commodities are transferred, and the realization ofthe sales income of the commodities is recognized; With regard to export income, according to thecontract, after the goods are delivered to the port or place designated by the customer or to thecarrier designated by the customer, and the customs declaration is passed, the income is recognized.
2. Income from providing labor services
For the quality assurance service, the service has been provided according to the contract, andthe income is recognized when the payment is received or the documents (including the amount)signed by the customer are obtained (unless it is indicated that it is not a condition for incomerecognition); For technical development service, the service has been provided according to thecontract, and the income is recognized according to the business recognition documents of bothparties; For other engineering services, the income is recognized by stages according to the projectperformance progress, and the performance progress is determined according to the output method.
31. Government subsidy
Government subsidy of the Company include project grants, financial subsidies and jobstabilization subsidies. Of which, asset-related government subsidy are government subsidyacquired by the Company for the acquisition or other formation of long-term assets; governmentsubsidy related to revenue are government subsidy other than those related to assets. If thegovernment document does not clearly specify the subsidy object, the Company will judgeaccording to the above-mentioned distinguishing principle. If it is difficult to distinguish, it will beoverall classified as a government subsidy related to income.If government subsidies are monetary assets, they are measured according to the amount actuallyreceived. For subsidies paid on the basis of a fixed quota standard, when there is conclusiveevidence at the end of the year that it can meet the relevant conditions stipulated by the financialsupport policy and is expected to receive financial support funds, they are measured according tothe amount receivable. If the government subsidy is a non-monetary asset, it shall be measured atits fair value, when the fair value cannot be obtained reliably, it shall be measured at its nominalamount (1 yuan).
Government subsidies related to assets are recognized as deferred income. Asset-relatedgovernment subsidies that are recognized as deferred income are included in the current profit andloss in installments according to the average life method during the useful life of the relevantassets.
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2024 to December 31, 2024（Unless other wise specified, RMB for record in the statement)
If the relevant asset is sold, transferred, scrapped or damaged before the end of its useful life, theundistributed deferred income balance shall be transferred to the current profit and loss of assetdisposal.
32. Deferred Income Tax Assets and Deferred Income Tax Liabilities
A deferred tax asset and deferred tax liability shall be determined by a difference (temporarydifference) between the carrying amount of an asset or liability and its tax base. The deferred taxasset shall be recognized for the carry forward of unused deductible losses that it is probable thatfuture taxable profits will be available against which the deductible losses can be utilized. Fortemporary difference arising from initial recognition of goodwill, no corresponding deferredincome tax liabilities will be recognized. For temporary difference arising from initial recognitionof assets and liabilities occurred in the transaction related to non-business combination whichneither affect accounting profit nor taxable income (or deductible losses), no correspondingdeferred income tax assets and deferred income tax liabilities will be recognized. As of the balancesheet date, deferred income tax assets and deferred income tax liabilities are measured at theeffective tax rate applicable to the period when recovery of assets or settlement of liabilities occur.The Company recognizes deferred income tax assets to the extent of future taxable income taxwhich is likely to be obtained to offset deductible temporary difference, deductible losses and taxcredits. For the confirmed deferred income tax assets.
33.Lease
When the Company becomes the lessee of the lease contract, has the right to obtain almost all theeconomic benefits arising from the use of the identified assets during the period of use, and has theright to lead the use of the identified assets during the period of use, the present value of unpaidlease payments of the lease assets after deducting lease incentives (except for short-term leasesand leases of low-value assets for which simplified treatment is selected) is recognized as a leaseliability, and a right-of-use asset is recognized based on the sum of the present value of the leaseliability, prepaid rent, and initial direct costs, and depreciation and interest expenses arerecognized separately.When the Company becomes the lessee of a lease contract, for short-term leases of less than oneyear without a purchase option and leases with a value of less than 40,000 yuan (excludingsublease or expected sublease assets), the Company elects to follow simplified treatment andrecord the related assets at cost or current gain/loss on a straight-line basis over the lease period.When the Company becomes the lessor of a lease contract, it classifies the lease into an operatinglease and a finance lease at the lease commencement date. A finance lease is a lease that transferssubstantially all the risks and rewards associated with the ownership of an asset. Operating leases
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2024 to December 31, 2024（Unless other wise specified, RMB for record in the statement)
are leases other than finance leases. Rentals under operating leases are recognized as income on astraight-line basis over the lease term. Finance leases are recorded at the net lease investmentvalue of the finance lease receivable, which is the sum of the unguaranteed residual value and thepresent value of the lease receipts not yet received as of the commencement date of the lease term.There are both leasing and non-leasing businesses in the contract and can be split, and the leasingbusiness is financially accounted according to the lease standards. There are both leasing andnon-leasing businesses in the contract and cannot be split, and the entire contract is included in thelease business for financial accounting according to the lease standards.The lease change needs to be judged whether it can be recognized as a single leasing business, andit needs to be recognized separately if it meets the recognition conditions of a single lease; if itdoes not meet the recognition of a single leasing business, or there is a major event or changewithin the controllable range of the lessee, re-evaluate and measure the present value of leaseliabilities, and adjust the book value of the right-of-use asset accordingly. If the book value of theright-of-use asset has been reduced to zero, but the lease liability still needs to be further reduced,the lessee shall include the remaining amount in the corresponding expenses for the currentperiod.
When the Company becomes the lessor of a lease contract, the lease is divided into operating leaseand finance lease on the start date of lease. A finance lease is a lease that transfers substantially allthe risks and rewards associated with ownership of an asset. An operating lease refers to a leaseother than finance leases. The rent of an operating lease is recognized as income on a straight-linebasis during the lease term. For an finance lease, the net investment in the lease is regarded as theentry value of the finance lease receivables, and the net investment in the lease is the sum of theunguaranteed residual value and the present value of the lease receipts that have not been receivedon the start date of the lease term.
34. Income tax accounting
The Company accounted the income tax in a method of debit in balance sheet. The income taxexpenses include income tax in the current year and deferred income tax. The income taxassociated with the events and transactions directly included in the owners’ equity shall beincluded in the owners’ equity; and the deferred income tax derived from business combinationshall be included in the carrying amount of goodwill, except for that above, the income taxexpense shall be included in the profit or loss in the current period.The income tax expense in the current year refers to the tax payable, which is calculated accordingtothe tax laws on the events and transactions incurred in the current period. The deferred incometax refersto the difference between the carrying amount and the deferred tax assets and deferred
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2024 to December 31, 2024（Unless other wise specified, RMB for record in the statement)
tax liabilities at Current Year-end recognized in the method of debit in the balance sheet.
35. Segment information
Business segment was the major reporting form of the Company, which divided into four parts:
air-conditioning, refrigerator & freezer& washing machine, small home appliance and others. Thetransfer price among the segments will recognize based on the market price, common costs willallocated by income proportion between segments except for the parts that without reasonableallocation.
36. Explanation on significant accounting estimation
The management of the Company needs to apply estimation and assumption when preparingfinancial statement which will affect the application of accounting policy and amounts of assets,liabilities, income and expense. The actual condition may differ from the estimation. Constantevaluation is conducted by the management in respect of the key assumption involved in theestimation and judgment of uncertainties. Effect resulting from change of accounting estimation isrecognized in the period the change occurs and future periods.The following accounting estimation and key assumption may result in material adjustment to thebook value of assets and liabilities in future period.
(1) Inventory impairment provision
The Company's provision for impairment of inventories on the balance sheet date is the part of thenet realizable value lower than the cost of inventories. The net realizable value of the inventory ofgoods that are directly used for sale, such as the goods in stock, the goods sent out, and thematerials for sale, and the low-consumption goods, shall be determined by the amount of theestimated selling price of the inventory minus the estimated selling expenses and relevant taxes.The net realizable value of the material inventory held for production is determined by theamount of the estimated selling price of the finished product produced minus the estimated cost tobe incurred at the time of completion, the estimated selling expenses and relevant taxes.
(2) Accounting estimation on long-term assets impairment provision
The Company makes impairment test on fixed assets such as buildings, machine and equipmentwhich have impairment indication and long-term assets such as goodwill as at the balance sheetdate. The recoverable amount of relevant assets and assets group shall be the present value of theprojected future cash flow which shall be calculated with accounting estimation.If the management amends the gross profit margin and discount rate adopted in calculation offuture cash flow of assets and assets group and the amended gross profit margin is lower than thecurrently adopted one or the amended discount rate is higher than the currently adopted one, the
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2024 to December 31, 2024（Unless other wise specified, RMB for record in the statement)
Company needs to increase provision of impairment provision. If the actual gross profit margin ishigher (or the discount rate is lower) than the estimation of management, the Company can nottransfer back the long term assets impairment provision provided already.
(3) Accounting estimation on realization of deferred income tax assets
Estimation on deferred income tax assets needs estimation on the taxable income and applicabletax rate for each future year. Realization of deferred income tax assets depends on whether acompany is able to obtain sufficient taxable income in future. Change of future tax rate and switchback of temporary difference could affect the balance of income tax expense (gains) and deferredincome tax. Change of the aforesaid estimation may result in material adjustment to deferredincome tax.
(4) Usable term and residual value rate of fixed assets and intangible assets
The Company, at least at the end of each accounting year, reviews the projected usable life andresidual value rate of fixed assets and intangible assets. The projected usable life and residualvalue rate are determined by the management based on the historical experiences of similar assetsby reference to the estimation generally used by the same industry with consideration on projectedtechnical upgrade. If material change occurs to previous estimation, the Company shallaccordingly adjust the depreciation expenses and amortization expenses for future period.
37. Other comprehensive income
Other comprehensive income represents various gains and losses not recognized in current gainsand losses according to other accounting rules.Other comprehensive income items shall be reported in the following two classes under otherrelevant accounting rules:
(1)Other comprehensive income items that can not be reclassified into gains and losses in futureaccounting periods, mainly including changes arising from re-measurement of net liabilities or netassets under defined benefit plan and interest in investee’s other comprehensive income which aremeasured under equity method and which can not be reclassified into gains and losses in futureaccounting periods;
(2) Other comprehensive income items that will be reclassified into gains and losses in futureaccounting periods upon satisfaction of required conditions, mainly includes the share of othercomprehensive income that is reclassified into profit and loss when the investee’s subsequentaccounting periods are accounted for in accordance with the equity method and meet the specifiedconditions, the fair value changes occurred by the debt investment that is measured at fair valueand whose changes are included in other comprehensive income, the difference between the
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2024 to December 31, 2024（Unless other wise specified, RMB for record in the statement)
original book value included in other comprehensive income and the fair value when a financialasset measured at amortized cost is reclassified as a financial asset measured at fair value and itschanges are included in other comprehensive income, the loss provisions for financial assetsmeasured at fair value and whose changes are included in other comprehensive income, the gainsor losses generated from cash flow hedging instruments are part of effective hedging, and thedifferences in conversion of foreign currency financial statements.
38. Change of significant accounting policies and accounting estimates
1．Change of significant accounting policy
(1) Changes in accounting policies caused by changes in accounting standards for businessenterprises
1) Since January 1, 2024, the company has implemented the provisions of "Division of CurrentLiabilities and Non-current Liabilities" stipulated in the Interpretation No.17 of AccountingStandards for Business Enterprises promulgated by the Ministry of Finance, and this accountingpolicy change has no impact on the company's financial statements.
2) Since January 1, 2024, the Company has implemented the provisions of "Disclosure ofSupplier Financing Arrangements" in Interpretation No.17 of Accounting Standards for BusinessEnterprises promulgated by the Ministry of Finance. See V (4) 3 for the specific disclosure impact.
3) Since January 1, 2024, the company has implemented the provisions of "AccountingTreatment of After-sale Leaseback Transactions" stipulated in the Interpretation No.17 ofAccounting Standards for Business Enterprises promulgated by the Ministry of Finance, and thisaccounting policy change has no impact on the Company's financial statements.
4) Since January 1, 2024, the Company has implemented the provisions of"AccountingTreatment for Guaranteed Quality Assurance that is not a single performance obligation" stipulatedin the Interpretation No.18 of Accounting Standards for Business Enterprises promulgated by theMinistry of Finance, and made retrospective adjustments to the information in comparable periods.
The impact of implementing the above accounting policies on the consolidated incomestatement for the year 2023 is as follows:
| Report items significantly affected | Consolidated report impact amount | Individual reports of the parent company affect the amount |
| 2023 Annual Income Statement Items | ||
| Operating cost | 148,752,958.42 | 20,592,252.94 |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2024 to December 31, 2024（Unless other wise specified, RMB for record in the statement)
| Sale cost | -148,752,958.42 | -20,592,252.94 |
Relevant accounting policy changes have been approved at the 12th meeting of the 11th Board ofDirectors of the CompanyIV. Taxation
1. Major taxes and tax rates
| Tax (expenses) | Tax (expenses) base | Tax (expenses) rate |
| VAT | The output tax is calculated based on the income from sales of goods and taxable services calculated according to the provisions of the tax law. After deducting the input tax allowed to be deducted in the current period, the difference is the VAT taxable | 13%,9%,6%,5%,3% |
| House Property Tax | In case of ad valorem, it will be levied according to 1.2% of the residual value after deducting 30% from the original value of the property; In case of rent-based collection, it will be levied according to 12% of the rental income | 1.2%、12% |
| Land use tax | Actual land area used | 1-6 yuan/㎡ |
| Urban maintenance and construction tax | Turnover tax | 7%,5% |
| Education surcharge | Turnover tax | 3% |
| Local education surcharge | Turnover tax | 2% |
| Corporate income tax | Taxable income | 29%,25%,22%,20%,15% |
Description of taxpayers with different corporate income tax rates:
| Name | Income tax rate |
| The Company | 15.00% |
| Zhongke Meiling Cryogenic Technology Co., Ltd. | 15.00% |
| Zhongshan Changhong Electric Co., Ltd. | 15.00% |
| Sichuan Hongmei Intelligent Technology Co., Ltd. | 15.00% |
| Mianyang Meiling Refrigeration Co., Ltd. | 15.00% |
| Ground Energy Heat Pump Tech. (Zhongshan) Co., Ltd. | 15.00% |
| Hefei Meiling Nonferrous Metal Products Co., Ltd. | 15.00% |
| Jiangxi Meiling Electric Appliance Co., Ltd. | 15.00% |
| Sichuan Changhong Air-conditioner Co., Ltd. | 15.00% |
| Hefei Meiling Wulian Technology Co., Ltd | 15.00% |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2024 to December 31, 2024（Unless other wise specified, RMB for record in the statement)
| Name | Income tax rate |
| Anhui Tuoxing Technology Co., Ltd. | 20.00% |
| Guangzhou Changhong Trading Co., Ltd. | 20.00% |
| Hebei Hongmao Daily Appliance Technology Co., Ltd. | 20.00% |
| CH-Meiling International (Philippines) Inc. | 20.00% |
| Changhong Ruba Trading Company (Private) Limited | 29.00% |
| CHANGHONG MEILING ELECTRIC INDONESIA,PT | 22.00% |
| Other taxpayers except the above | 25.00% |
2. Preferential tax
1.Corporate income tax
(1) On November 30, 2023, the Company passed the high-tech enterprise certification andobtained the high-tech enterprise certificate numbered GR2020340006385, and shall enjoy thenational high-tech enterprise income tax rate of 15%, which is valid for three years.
(2) On October 16, 2023, the subsidiary Zhongke Meiling Cryogenic Technology Co., Ltd.obtained the high-tech enterprise certificate numbered GR202334003036 approved by the AnhuiProvincial Department of Science and Technology, the Anhui Provincial Department of Finance,and the Anhui Provincial Taxation Bureau of the State Administration of Taxation, and shall enjoythe 15% enterprise income tax rate of the national high-tech enterprise, which is valid for threeyears.
(3) On December 28, 2023, the subsidiary Zhongshan Changhong Electric Appliance Co., Ltd.obtained a high-tech enterprise certificate with a certificate number of GR202344012950approved by the Guangdong Provincial Department of Science and Technology, the GuangdongProvincial Department of Finance and the Guangdong Provincial Taxation Bureau of the StateAdministration of Taxation, and shall enjoy a national enterprise income tax rate of 15% forhigh-tech enterprises, which is valid for three years
(4) On December 6, 2024, the subsidiary Sichuan Hongmei Intelligent Technology Co., Ltd.obtained the high-tech enterprise certificate with a certificate number of GR202451002000approved by the Science and Technology Department of Sichuan Province, the Finance Departmentof Sichuan Province and the Sichuan Provincial Tax Service, State Taxation Administration, andwas entitled to the income tax rate of 15% for national high-tech enterprises for a period of threeyears.
(5) The subsidiary Mianyang Meiling Refrigeration Co., Ltd. belongs to the encouragedindustries listed in the Guidance Catalogue of Industrial Structure Adjustment, and is entitled to the
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2024 to December 31, 2024（Unless other wise specified, RMB for record in the statement)
preferential tax policy of enterprise income tax for the development of the western region, and itsenterprise income tax is levied at a reduced rate of 15%, which is valid until December 31, 2030.
(6) On December 22nd, 2022, the subsidiary Hongyuan Ground Energy Heat PumpTechnology (Zhongshan) Co., Ltd. obtained the high-tech enterprise certificate with a certificatenumber of GR202244005222 approved by the Department of Science and Technology ofGuangdong Province, Department of Finance of Guangdong Province and Guangdong ProvincialTax Service, State Taxation Administration, and was entitled to the enterprise income tax rate of 15%for national high-tech enterprises for a period of three years.
(7) On November 28, 2024, the subsidiary Hefei Meiling Non-ferrous Metal Products Co.,Ltd. obtained the high-tech enterprise certificate with a certificate number of GR202434004167approved by Anhui Provincial Department of Science and Technology, Anhui ProvincialDepartment of Finance and Anhui Provincial Taxation Service, State Taxation Administration, andwas entitled to the income tax rate of 15% for national high-tech enterprises for a period of threeyears.
(8) On November 4, 2022, the subsidiary Jiangxi Meiling Electric Appliance Co., Ltd.obtained the high-tech enterprise certificate with a certificate number of GR202236000475approved by Science and Technology Department of Jiangxi Province, Jiangxi ProvincialDepartment of Finance and Jiangxi Tax Service, State Taxation Administration, and was entitled tothe income tax rate of 15% for national high-tech enterprises for a period of three years.
(9) On November 29, 2022, the subsidiary Sichuan Changhong Air Conditioning Co., Ltd.obtained the high-tech enterprise certificate with a certificate number of GR202251005824approved by Science and Technology Department of Sichuan Province, Sichuan Provincial FinanceDepartment and State Taxation Administration, and was entitled to the income tax rate of 15% fornational high-tech enterprises for a period of three years.
(10) On November 28, 2024, the subsidiary Hefei Meiling IOT Technology Co., Ltd. obtainedthe high-tech enterprise certificate with a certificate number of GR202434004986 approved byAnhui Provincial Department of Science and Technology, Anhui Provincial Department of Financeand Anhui Provincial Taxation Service, State Taxation Administration, and was entitled to theincome tax rate of 15% for national high-tech enterprises for a period of three years.
(11) According to the Announcement of the Ministry of Finance and the State TaxationAdministration on Further Supporting the Development of Tax and Fee Policies for Small andMicro Enterprises and Individual Industrial and Commercial Households (Announcement No.12 ofthe Ministry of Finance and the State Taxation Administration in 2023), "The taxable income ofsmall and low-profit enterprises will be reduced by 25%, and the enterprise income tax policy willbe paid at a rate of 20%, which will be implemented until December 31, 2027". The subsidiaries
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2024 to December 31, 2024（Unless other wise specified, RMB for record in the statement)
Anhui Tuoxing Technology Co., Ltd., Guangzhou Changhong Trading Co., Ltd. and HebeiHongmao Household Appliance Technology Co., Ltd. applied the above preferential policies thisyear.
2.VAT
(1) According to the Announcement of the Ministry of Finance and the State TaxationAdministration on the Policy of Adding and Deducting VAT for Advanced ManufacturingEnterprises (Announcement No.43 of the Ministry of Finance and the State Taxation Administrationin 2023), additional VAT payable of 5% will be deducted according to the deductible input tax in thecurrent period for advanced manufacturing enterprises from January 1, 2023 to December 31, 2027.The Company and its subsidiaries Zhongke Meiling Cryogenics Technology Co., Ltd., ZhongshanChanghong Electric Co.,Ltd., Hongyuan Ground Energy Heat Pump Technology (Zhongshan) Co.,Ltd., Hefei Meiling Non-ferrous Metal Products Co., Ltd., Jiangxi Meiling Electric Appliance Co.,Ltd. and Sichuan Changhong Air Conditioning Co., Ltd. applied the above preferential policies.
(2) According to the Notice of the Ministry of Finance and the State Taxation Administrationon the VAT Policy of Software Products (CS [2011] No.100), for sales by general VAT taxpayers ofthe software products developed and produced by themselves, after the VAT is levied at the rate of13%, the part whose actual VAT tax exceeds 3% will be refunded immediately. The subsidiariesZhongke Meiling Cryogenics Technology Co., Ltd. and Sichuan Hongmei Intelligent TechnologyCo., Ltd. applied the above preferential policies.V.Consolidated financial statement item notes
1. Monetary fund
| Item | Ending balance | Beginning balance |
| Cash | 19,623.13 | 15,600.68 |
| Bank deposit | 5,430,927,146.17 | 4,160,140,914.47 |
| Other monetary fund | 492,614,908.35 | 427,457,768.37 |
| Deposit funds from the financial company | 4,568,889,072.96 | 4,255,008,952.20 |
| Total | 10,492,450,750.61 | 8,842,623,235.72 |
| Including: total amount deposited in overseas | 39,440,542.18 | 25,902,580.15 |
2. Tradable financial assets
| Item | Ending Balance | Beginning Balance |
| Financial assets measured at fair value and whose changes are included in current gains/losses | 39,236,447.63 | |
| Including: Derivative financial assets | 39,236,447.63 |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2024 to December 31, 2024（Unless other wise specified, RMB for record in the statement)
| Item | Ending Balance | Beginning Balance |
| Total | 39,236,447.63 |
3. Derivative financial assets
| project | Ending Balance | Beginning Balance |
| forward exchange contract | 72,010,074.43 | |
| total | 72,010,074.43 |
4. Note receivable
(1) Detail
| Item | Ending Balance | Beginning Balance |
| Bank acceptance | 228,500.00 | |
| Trade acceptance | 38,674.50 | |
| Total | 267,174.50 |
(2) By accrual of bad debt provision
1) Detail
| Category | Beginning balance | ||||
| Book balance | Bad debt provision | Book value | |||
| Amount | Ratio (%) | Amount | Ratio (%) | ||
| With bad debt provision accrual on single item | 267,174.50 | 100.00 | 267,174.50 | ||
| Including: Bank acceptance | 228,500.00 | 85.52 | 228,500.00 | ||
| Trade acceptance | 38,674.50 | 14.48 | 38,674.50 | ||
| Subtotal | 267,174.50 | 100.00 | 267,174.50 | ||
| Account receivable withdrawal bad debt provision by portfolio | |||||
| Total | 267,174.50 | 100.00 | 267,174.50 | ||
5. Account receivable
(1) Category of account receivable by aging
| Account age | Balance at year-end | Balance at year-begin |
| Within 1 year（Including 1 year） | 1,497,253,392.98 | 1,653,598,197.84 |
| Including： |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2024 to December 31, 2024（Unless other wise specified, RMB for record in the statement)
| Account age | Balance at year-end | Balance at year-begin |
| Within 3 months (3 months included) | 1,368,463,315.70 | 1,465,495,273.51 |
| More than 3 months and less than 6 months (6 months included) | 97,181,265.60 | 140,402,241.40 |
| Over 6 months and within one year (One year included) | 31,608,811.68 | 47,700,682.93 |
| Over one year - within 2 years (2 years included) | 75,307,523.19 | 131,382,522.20 |
| Over 2 years - within 3 years (3 years included) | 87,182,259.34 | 154,167,214.15 |
| Over 3 years | 188,612,629.93 | 76,295,036.77 |
| Total | 1,848,355,805.44 | 2,015,442,970.96 |
(2) By accrual of bad debt provision
1) Detail
| Category | Balance at year-end | ||||
| Book balance | Bad debt provision | Book value | |||
| Amount | Ratio (%) | Amount | Ratio (%) | ||
| Account receivable that withdrawal bad debt provision by single item | 736,905,399.87 | 39.87 | 174,360,359.87 | 23.66 | 562,545,040.00 |
| Including: Account receivable with letter of credit | 204,543,428.36 | 11.07 | 204,543,428.36 | ||
| Current payment with related party | 485,828,526.67 | 26.28 | 129,934,772.07 | 26.74 | 355,893,754.60 |
| Receivables whose single amount is not significant but whose single provision for bad debts | 46,533,444.84 | 2.52 | 44,425,587.80 | 95.47 | 2,107,857.04 |
| Account receivable withdrawal bad debt provision by portfolio | 1,111,450,405.57 | 60.13 | 146,017,071.09 | 13.14 | 965,433,334.48 |
| Including: account receivable of engineering customers | 185,634,242.24 | 10.04 | 54,756,852.90 | 29.50 | 130,877,389.34 |
| Receivables other than engineering customers | 925,816,163.33 | 50.09 | 91,260,218.19 | 9.86 | 834,555,945.14 |
| Total | 1,848,355,805.44 | 100.00 | 320,377,430.96 | 17.33 | 1,527,978,374.48 |
Continued
| Category | Amount at year-begin | ||
| Book balance | Bad debt provision | Book value | |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2024 to December 31, 2024（Unless other wise specified, RMB for record in the statement)
| Amount | Ratio (%) | Amount | Ratio (%) | ||
| Account receivable that withdrawal bad debt provision by single item | 712,659,116.51 | 35.36 | 195,578,324.84 | 27.44 | 517,080,791.67 |
| Including: Account receivable with letter of credit | 83,951,301.01 | 4.17 | 83,951,301.01 | ||
| Current payment with related party | 575,373,568.93 | 28.55 | 154,606,151.98 | 26.87 | 420,767,416.95 |
| Receivables whose single amount is not significant but whose single provision for bad debts | 53,334,246.57 | 2.65 | 40,972,172.86 | 76.82 | 12,362,073.71 |
| Account receivable withdrawal bad debt provision by portfolio | 1,302,783,854.45 | 64.64 | 139,561,406.03 | 10.71 | 1,163,222,448.42 |
| Including: account receivable of engineering customers | 212,621,463.45 | 10.55 | 44,910,916.50 | 21.12 | 167,710,546.95 |
| Receivables other than engineering customers | 1,090,162,391.00 | 54.09 | 94,650,489.53 | 8.68 | 995,511,901.47 |
| Total | 2,015,442,970.96 | 100.00 | 335,139,730.87 | 16.63 | 1,680,303,240.09 |
2) Receivables whose single amount is not significant but whose single provision for bad debtsReceivables whose single amount is not significant but whose single provision for bad debts,refers to the minor single receivables, and withdrawal bad debt provision by combination showsno risk characteristic of the receivables, 116 clients involved.
3) Account receivable withdrawal bad debt provision by portfolio
A.Account receivable of engineering customers
| Account age | Balance at year-end | ||
| Book balance | Bad debt provision | Provision ratio (%) | |
| Within 3 months (3 months included) | 25,327,660.33 | ||
| More than 3 months and less than 6 months (6 months included) | 14,901,434.29 | ||
| Over 6 months and within one year (One year included) | 28,923,666.97 | ||
| Over one year - within 2 years (2 years included) | 56,974,354.61 | 11,394,870.93 | 20.00 |
| Over 2 years - within 3 years (3 years included) | 32,290,288.15 | 16,145,144.08 | 50.00 |
| Over 3 years | 27,216,837.89 | 27,216,837.89 | 100.00 |
| Total | 185,634,242.24 | 54,756,852.90 | 29.50 |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2024 to December 31, 2024（Unless other wise specified, RMB for record in the statement)
Continued
| Account age | Balance at year-begin | ||
| Book balance | Bad debt provision | Provision ratio (%) | |
| Within 3 months (3 months included) | 33,502,386.39 | ||
| More than 3 months and less than 6 months (6 months included) | 29,638,184.67 | ||
| Over 6 months and within one year (One year included) | 29,724,507.75 | ||
| Over one year - within 2 years (2 years included) | 71,526,399.70 | 14,305,279.94 | 20.00 |
| Over 2 years - within 3 years (3 years included) | 35,248,696.77 | 17,624,348.39 | 50.00 |
| Over 3 years | 12,981,288.17 | 12,981,288.17 | 100.00 |
| Total | 212,621,463.45 | 44,910,916.50 | 21.12 |
B.Receivables other than engineering customers
| Account age | Balance at year-end | ||
| Book balance | Bad debt provision | Provision ratio (%) | |
| Within 3 months (3 months included) | 832,210,142.16 | 8,322,101.42 | 1.00 |
| More than 3 months and less than 6 months (6 months included) | 8,867,933.33 | 886,793.33 | 10.00 |
| Over 6 months and within one year (One year included) | 2,545,036.25 | 509,007.25 | 20.00 |
| Over one year - within 2 years (2 years included) | 1,083,159.99 | 541,580.00 | 50.00 |
| Over 2 years - within 3 years (3 years included) | 545,777.06 | 436,621.65 | 80.00 |
| Over 3 years | 80,564,114.54 | 80,564,114.54 | 100.00 |
| Total | 925,816,163.33 | 91,260,218.19 | 9.86 |
Continued
| Account age | Balance at year-begin | ||
| Book balance | Bad debt provision | Provision ratio (%) | |
| Within 3 months (3 months included) | 940,622,126.91 | 9,406,221.28 | 1.00 |
| More than 3 months and less than 6 months (6 months included) | 42,030,490.13 | 4,203,049.01 | 10.00 |
| Over 6 months and within one year (One year included) | 9,463,055.00 | 1,892,611.00 | 20.00 |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2024 to December 31, 2024（Unless other wise specified, RMB for record in the statement)
| Account age | Balance at year-begin | ||
| Book balance | Bad debt provision | Provision ratio (%) | |
| Over one year - within 2 years (2 years included) | 2,765,533.98 | 1,382,766.99 | 50.00 |
| Over 2 years - within 3 years (3 years included) | 87,576,718.61 | 70,061,374.88 | 80.00 |
| Over 3 years | 7,704,466.37 | 7,704,466.37 | 100.00 |
| Total | 1,090,162,391.00 | 94,650,489.53 | 8.68 |
C. Bad debt provision of accounts receivable
1) Detail
| Category | Balance at year-begin | Changes this year | Balance at year-end | |||
| Accrual | Withdrawal or reversal | Resale or write-off | Other decreases | |||
| Withdrawal bad debt provision by single item | 195,578,324.84 | 7,394,931.77 | 28,600,649.28 | -12,247.46 | 174,360,359.87 | |
| Withdrawal bad debt provision by portfolio | 139,561,406.03 | 6,212,365.75 | 243,299.31 | 146,017,071.09 | ||
| Total | 335,139,730.87 | 13,607,297.52 | 28,600,649.28 | 231,051.85 | 320,377,430.96 | |
2) Recovery or reversal of important bad debt reserves in this period
| Unit name | Amount recovered or reversed | Reason for reversal | Recovery mode | Basis and rationality of determining the original provision for bad debts |
| Sichuan Zhiyijia Network Technology Co., Ltd. | 26,402,499.40 | Payment recovery | Customer repayment | Mainly due to recovery of bad debts accrued in the early period due to the deterioration of Gome's business |
| Subtotal | 26,402,499.40 |
(4) Account receivable actually written-off in Current Year
N/A
(5) Top 5 accounts receivable and contract assets amount
Top 5 receivables collected by arrears party amounting to 587,980,658.36yuan in total, accounted
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2024 to December 31, 2024（Unless other wise specified, RMB for record in the statement)
for 31.76% of the receivables of current year-end, the bad debt provision accrual correspondinglyamounting to 90,080,165.99 yuan at year-end balance.
6. Receivables financing
(1) Detail
| Item | Ending balance | Opening balance |
| Bank acceptance | 1,482,928,143.55 | 1,641,858,740.34 |
| Financial company acceptance bill | 34,059,810.28 | |
| Total | 1,516,987,953.83 | 1,641,858,740.34 |
(2) By accrual of bad debt provision
| Category | Ending balance | ||||
| Book balance | Bad debt provision | Book value | |||
| Amount | Ratio (%) | Amount | Ratio (%) | ||
| Withdrawal bad debt provision by single item | 1,516,987,953.83 | 100.00 | 1,516,987,953.83 | ||
| Including：Bank acceptance | 1,482,928,143.55 | 97.75 | 1,482,928,143.55 | ||
| Financial company acceptance bill | 34,059,810.28 | 2.25 | 34,059,810.28 | ||
| Total | 1,516,987,953.83 | 100.00 | 1,516,987,953.83 | ||
Continued
| Category | Balance at year-begin | ||||
| Book balance | Bad debt provision | Book value | |||
| Amount | Ratio (%) | Amount | Ratio (%) | ||
| Withdrawal bad debt provision by single item | 1,641,858,740.34 | 100.00 | 1,641,858,740.34 | ||
| Including：Bank acceptance | 1,641,858,740.34 | 100.00 | 1,641,858,740.34 | ||
| Total | 1,641,858,740.34 | 100.00 | 1,641,858,740.34 | ||
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2024 to December 31, 2024（Unless other wise specified, RMB for record in the statement)
(3) Changes in credit impairment provisions
There is no bad debt provision accrued, recovered or reversed this year;
(4)Financing of receivables that have been pledged at the end of the year
| Item | Year-end pledged amount |
| Bank acceptance | 584,233,204.78 |
| Subtotal | 584,233,204.78 |
Note: with purpose of improving the note utilization, the Company draw up bank acceptance bypledge parts of the outstanding notes receivable to the bank. For details of the pledge of billsreceivable, see Note V. 26. Assets with restricted ownership or use rights.
(5) Notes endorsement or discount and undue on balance sheet date listed in receivablesfinancing at the end of the year
| Item | Amount derecognition at period-end |
| Bank acceptance | 804,812,890.67 |
| Financial company acceptance bill | 6,118,683.00 |
| Total | 810,931,573.67 |
7. Accounts paid in advance
(1) Age of account paid in advance
| Aging | Ending balance | |||
| Book balance | Ratio(%) | Provision for impairment | Book value | |
| Within one year | 59,929,582.83 | 99.30 | 59,929,582.83 | |
| 1-2 years | 266,216.81 | 0.44 | 266,216.81 | |
| 2-3 years | 47,912.63 | 0.08 | 47,912.63 | |
| Over 3 years | 108,633.00 | 0.18 | 108,633.00 | |
| Total | 60,352,345.27 | 100.00 | 60,352,345.27 | |
Continued
| Aging | Opening balance | |||
| Book balance | Ratio(%) | Provision for impairment | Book value | |
| Within one year | 43,346,277.88 | 94.65 | 43,346,277.88 | |
| 1-2 years | 811,122.73 | 1.77 | 811,122.73 | |
| 2-3 years | 707,919.39 | 1.55 | 707,919.39 | |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2024 to December 31, 2024（Unless other wise specified, RMB for record in the statement)
| Aging | Opening balance | |||
| Book balance | Ratio(%) | Provision for impairment | Book value | |
| Over 3 years | 930,855.02 | 2.03 | 930,855.02 | |
| Total | 45,796,175.02 | 100.00 | 45,796,175.02 | |
(2) Top 5 of account paid in advance
Top 5 of account paid in advance in balance at period-end amounting to 48,658,243.44 yuan,accounted for 80.62% of the account.
8. Other account receivable
(1) Detail
| Ending balance | Ending balance | Opening balance |
| Dividend receivable | 12,124,951.70 | |
| Other account receivable | 123,266,319.09 | 100,159,876.70 |
| Total | 135,391,270.79 | 100,159,876.70 |
(2) Dividend receivable
| Ending balance | Ending balance | Opening balance |
| Sichuan Zhiyijia Network Technology Co., Ltd. | 11,849,751.70 | |
| Sichuan Hongyun New Generation Information Technology Venture Capital Fund Partnership Enterprise (Limited Partnership | 275,200.00 | |
| Subtotal | 12,124,951.70 |
(3) Other receivable
1)) Category of other account receivable
| Nature | Book balance at year-end | Book balance at year-begin |
| Loans of employee’s pretty cash | 15,452,988.04 | 21,047,009.96 |
| Cash deposit | 11,343,322.56 | 20,927,726.52 |
| Export rebate | 95,274,068.20 | 41,300,752.20 |
| Related party | 3,020,490.22 | 17,748,842.07 |
| Other | 1,327,326.50 | 2,195,851.43 |
| Subtotal | 126,418,195.52 | 103,220,182.18 |
2) By account age
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2024 to December 31, 2024（Unless other wise specified, RMB for record in the statement)
| Account age | Balance at year-end | Balance at year-begin |
| Within 3 months | 112,225,289.22 | 77,938,073.75 |
| More than 3 months and less than 6 months | 787,433.33 | 1,842,273.09 |
| Over 6 months and within one yea | 3,137,720.39 | 12,066,909.96 |
| 1-2 years | 2,433,214.96 | 3,017,092.43 |
| 2-3 years | 2,216,446.08 | 2,473,240.42 |
| Over 3 years | 5,618,091.54 | 5,882,592.53 |
| Subtotal | 126,418,195.52 | 103,220,182.18 |
3) By accrual of bad debt provision
| Category | Amount at year-end | ||||
| Book balance | Bad debt provision | Book value | |||
| Amount | Ratio (%) | Amount | Ratio (%) | ||
| That withdrawal bad debt provision by single item | 126,192,156.34 | 99.82 | 3,057,306.45 | 2.42 | 123,134,849.89 |
| In which: other receivables with no major individual amount but bad debt provision accrued individually | 27,897,597.92 | 22.07 | 3,057,306.45 | 10.96 | 24,840,291.47 |
| Export rebate receivable | 95,274,068.20 | 75.36 | 95,274,068.20 | ||
| Related party funds | 3,020,490.22 | 2.39 | 3,020,490.22 | ||
| Bad debt provision accrued by portfolio | 226,039.18 | 0.18 | 94,569.98 | 41.84 | 131,469.20 |
| In which: other receivables accrued by aging portfolio | 226,039.18 | 0.18 | 94,569.98 | 41.84 | 131,469.20 |
| Total | 126,418,195.52 | 100.00 | 3,151,876.43 | 2.49 | 123,266,319.09 |
Continued
| Category | Balance at year-begin | ||||
| Book balance | Bad debt provision | Book value | |||
| Amount | Ratio (%) | Amount | Ratio (%) | ||
| That withdrawal bad debt provision by single item | 102,904,714.16 | 99.70 | 2,945,873.36 | 2.86 | 99,958,840.80 |
| In which: other receivables with no major individual amount but bad debt provision accrued individually | 43,855,119.89 | 42.49 | 2,945,873.36 | 6.72 | 40,909,246.53 |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2024 to December 31, 2024（Unless other wise specified, RMB for record in the statement)
| Category | Balance at year-begin | ||||
| Book balance | Bad debt provision | Book value | |||
| Amount | Ratio (%) | Amount | Ratio (%) | ||
| Export rebate receivable | 41,300,752.20 | 40.01 | 41,300,752.20 | ||
| Related party funds | 17,748,842.07 | 17.20 | 17,748,842.07 | ||
| Bad debt provision accrued by portfolio | 315,468.02 | 0.30 | 114,432.12 | 36.27 | 201,035.90 |
| In which: other receivables accrued by aging portfolio | 315,468.02 | 0.30 | 114,432.12 | 36.27 | 201,035.90 |
| Total | 103,220,182.18 | 100.00 | 3,060,305.48 | 2.96 | 100,159,876.70 |
4) Changes in bad debt provisions
①Detail
| Bad debt provision | First stage | Second stage | Third stage | Subtotal |
| Expected credit loss in next 12 months | Expected credit loss for the whole duration (no credit impairment) | Expected credit loss for the whole duration (credit impairment has occurred) | ||
| Balance at year-begin | 181.49 | 58,484.21 | 3,001,639.78 | 3,060,305.48 |
| Balance at year-begin in Current Year | —— | —— | —— | |
| --Transfer to the second stage | ||||
| -- Transfer to the third stage | ||||
| -- Reversal to the second stage | ||||
| -- Reversal to the first stage | ||||
| Provision in Current Year | 5,749.78 | -36,079.13 | 132,367.51 | 102,038.16 |
| Reversal in Current Year | 10,467.21 | 10,467.21 | ||
| Write off in Current Year | ||||
| Other change | ||||
| Balance at year-end | 5,931.27 | 22,405.08 | 3,123,540.08 | 3,151,876.43 |
②Bad debt provision for other receivables accrued, recovered or reversed this year
| Category | Year-beginning | Amount of change this year | Year-end |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2024 to December 31, 2024（Unless other wise specified, RMB for record in the statement)
| Accrual | Recovery or reversal | Write-off or cancellation | Other | balance | ||
| Withdrawal bad debt provision by single item | 2,945,873.36 | 121,900.30 | 10,467.21 | 3,057,306.45 | ||
| Withdrawal bad debt provision by portfolio | 114,432.12 | -19,862.14 | 94,569.98 | |||
| Subtotal | 3,060,305.48 | 102,038.16 | 10,467.21 | 3,151,876.43 |
5) Other account receivable actually written-off in Current Year:N/A
6) Top 5 other receivables
| Name | Nature | Balance at year-end | Account age | Proportion in total other receivables ending balance (%) | Bad debt provision Balance at year-end |
| Unit I | Tax rebate | 95,274,068.20 | Within 3 months | 75.36 | |
| Unit II | Related party | 2,217,600.00 | Within 3 months | 1.75 | |
| Unit III | Loans of employee’s pretty cash | 1,749,678.39 | Within 3 months | 1.38 | |
| Unit IV | Cash deposit | 1,689,512.96 | 6 months-1 year | 1.34 | |
| Unit V | Loans of employee’s pretty cash | 1,492,204.27 | Within 3 months | 1.18 | |
| Total | 102,423,063.82 | 81.01 |
9. Inventories
(1) Detail
| Item | Amount at year-end | ||
| Book balance | Inventory price decline provision/contract performance cost impairment provision | Book value | |
| Raw materials | 212,959,918.52 | 5,083,192.31 | 207,876,726.21 |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2024 to December 31, 2024（Unless other wise specified, RMB for record in the statement)
| Item | Amount at year-end | ||
| Book balance | Inventory price decline provision/contract performance cost impairment provision | Book value | |
| Low value consumable articles | 266,404.78 | 97,317.58 | 169,087.20 |
| Deferred expense for mould | 90,498,578.88 | 90,498,578.88 | |
| Stock commodities | 2,140,311,193.05 | 101,125,135.79 | 2,039,186,057.26 |
| Goods in transit | 1,144,852,004.99 | 9,982,021.26 | 1,134,869,983.73 |
| Goods-in-process | 10,482,237.67 | 39,214.30 | 10,443,023.37 |
| Contract performance cost | 31,928,661.07 | 4,108.38 | 31,924,552.69 |
| Total | 3,631,298,998.96 | 116,330,989.62 | 3,514,968,009.34 |
(Continued)
| Item | Opening balance | ||
| Book balance | Inventory price decline provision/contract performance cost impairment provision | Book value | |
| Raw materials | 150,806,222.67 | 4,061,217.23 | 146,745,005.44 |
| Low value consumable articles | 3,141,564.20 | 143,306.82 | 2,998,257.38 |
| Deferred expense for mould | 47,131,566.78 | 47,131,566.78 | |
| Stock commodities | 1,216,312,053.20 | 60,027,642.16 | 1,156,284,411.04 |
| Goods in transit | 641,198,998.83 | 7,934,263.70 | 633,264,735.13 |
| Goods-in-process | 7,337,268.01 | 7,337,268.01 | |
| Contract performance cost | 28,988,664.67 | 28,988,664.67 | |
| Total | 2,094,916,338.36 | 72,166,429.91 | 2,022,749,908.45 |
(2) Provision for inventory depreciation and contract performance cost impairment provision
1) Detail
| Item | Opening balance | Increase this period | Decrease this period | Ending balance | ||
| Accrual | Other | Reversal or reselling | Other | |||
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2024 to December 31, 2024（Unless other wise specified, RMB for record in the statement)
| Item | Opening balance | Increase this period | Decrease this period | Ending balance | ||
| Accrual | Other | Reversal or reselling | Other | |||
| Raw materials | 4,061,217.23 | 3,356,900.39 | 2,334,925.31 | 5,083,192.31 | ||
| Low value consumable articles | 143,306.82 | 2,634.64 | 48,623.88 | 97,317.58 | ||
| Stock commodities | 60,027,642.16 | 76,933,185.81 | 35,748,538.30 | 87,153.88 | 101,125,135.79 | |
| Goods in transit | 7,934,263.70 | 16,960,541.01 | 14,912,783.45 | 9,982,021.26 | ||
| Goods-in-process | 39,214.30 | 39,214.30 | ||||
| Contract performance cost | 121,857.53 | 117,749.15 | 4,108.38 | |||
| Total | 72,166,429.91 | 97,414,333.68 | 53,162,620.09 | 87,153.88 | 116,330,989.62 | |
2) Specific basis for determining the net realizable value, and the reasons for reversal orwrite-off of inventory depreciation provision in this period
| Item | Specific basis for determining of net realizable value | Reasons for the reversal or reselling in Current Period |
| Raw materials | Cost is higher than net realizable value (The processed products are decline) | For production |
| Stock commodities | Cost is higher than net realizable value (The market price at period-end fell) | For sale |
| Goods in transit | Cost is higher than net realizable value (The market price at period-end fell) | For sale |
| Low value consumable articles | Cost is higher than net realizable value | Already used |
| Contract performance cost | Engineering construction cost is higher than net realizable value (The processed products are decline) | Already used |
10. Contract assets
(1) Detail
| Item | Ending balance | ||
| Book balance | Impairment provision | Book value | |
| Warranty | 3,226,503.19 | 462,636.22 | 2,763,866.97 |
| Total | 3,226,503.19 | 462,636.22 | 2,763,866.97 |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2024 to December 31, 2024（Unless other wise specified, RMB for record in the statement)
(Continued)
| Item | Opening balance | ||
| Book balance | Impairment provision | Book value | |
| Warranty | 13,879,087.90 | 617,397.28 | 13,261,690.62 |
| Total | 13,879,087.90 | 617,397.28 | 13,261,690.62 |
(2) Amount and reasons for significant changes in book value during the year
| Items | Change amount | Change cause |
| Warranty | -10,497,823.65 | New performance sales contract |
| Total | -10,497,823.65 |
(3) Provision for impairment of contract asset in the Period
| Category | Balance at year-end | ||||
| Book balance | Bad debt provision | Book value | |||
| Amount | Ratio (%) | Amount | Ratio (%) | ||
| Withdrawal bad debt provision by single | 3,226,503.19 | 100.00 | 462,636.22 | 14.34 | 2,763,866.97 |
| Total | 3,226,503.19 | 100.00 | 462,636.22 | 14.34 | 2,763,866.97 |
Continued
| Category | Amount at year-begin | ||||
| Book balance | Bad debt provision | Book value | |||
| Amount | Ratio (%) | Amount | Ratio (%) | ||
| Withdrawal bad debt provision by single | 13,879,087.90 | 100.00 | 617,397.28 | 4.45 | 13,261,690.62 |
| Total | 13,879,087.90 | 100.00 | 617,397.28 | 4.45 | 13,261,690.62 |
(4) Provision for impairment of contract asset in the Period
| Item | Amount at year-begin | Increase this year | Amount at year-end | |||
| Accrual | Other | Reversal or reselling | Other | |||
| Withdrawal bad debt provision by single | 617,397.28 | 37,408.05 | 192,169.11 | 462,636.22 | ||
| Total | 617,397.28 | 37,408.05 | 192,169.11 | 462,636.22 | ||
11. Non-current assets coming due within one year
(1) Detail
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2024 to December 31, 2024（Unless other wise specified, RMB for record in the statement)
| Name | Balance at year-end | Balance at year-begin | ||||
| Book balance | Impairment provision | Book value | Book balance | Impairment provision | Book value | |
| Creditor's right investment due within one year | 53,831,301.37 | 53,831,301.37 | 122,294,027.78 | 122,294,027.78 | ||
| Warranty money due within one year | 6,531,620.47 | 120,000.00 | 6,411,620.47 | |||
| Total | 60,362,921.84 | 120,000.00 | 60,242,921.84 | 122,294,027.78 | 122,294,027.78 | |
(2) Creditor's right investment due within one year
| Name | Balance at year-end | Balance at year-begin | ||||
| Book balance | Impairment provision | Book value | Book balance | Impairment provision | Book value | |
| large deposit certificates | 53,831,301.37 | 53,831,301.37 | 122,294,027.78 | 122,294,027.78 | ||
| Total | 53,831,301.37 | 53,831,301.37 | 122,294,027.78 | 122,294,027.78 | ||
(3) Creditor's right investment due within 1 year at the end of the year:NO
12.Other current asset
| Item | Balance at year-end | Balance at year-begin | ||||
| Book balance | Impairment provision | Book value | Book balance | Impairment provision | Book value | |
| VAT to be deducted | 6,591,963.44 | 6,591,963.44 | ||||
| Advance payment of income tax | 38,375,210.13 | 38,375,210.13 | 29,599,620.50 | 29,599,620.50 | ||
| VAT input tax is to be deducted | 199,284,116.97 | 199,284,116.97 | 193,911,165.30 | 193,911,165.30 | ||
| Contract acquisition cost | 701,222.80 | 701,222.80 | ||||
| Time deposits held to maturity | 253,112,899.55 | 253,112,899.55 | ||||
| Hold a large loan due | 54,770,499.43 | 54,770,499.43 | ||||
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2024 to December 31, 2024（Unless other wise specified, RMB for record in the statement)
| Item | Balance at year-end | Balance at year-begin | ||||
| Book balance | Impairment provision | Book value | Book balance | Impairment provision | Book value | |
| Local sales tax in Pakistan | 689,887.41 | 689,887.41 | 511,584.19 | 511,584.19 | ||
| Deferred expenses | 9,205,786.05 | 9,205,786.05 | 696,290.28 | 696,290.28 | ||
| Total | 562,030,362.98 | 562,030,362.98 | 225,419,883.07 | 225,419,883.07 | ||
13.Creditors' right investment
(1) Detail
| Item | Balance at year-end | ||
| Book balance | Impairment provision | Book value | |
| large deposit certificates | 1,474,153,793.17 | 1,474,153,793.17 | |
| Total | 1,474,153,793.17 | 1,474,153,793.17 | |
Continued
| Item | Balance at year-begin | ||
| Book balance | Impairment provision | Book value | |
| large deposit certificates | 420,537,485.54 | 420,537,485.54 | |
| Total | 420,537,485.54 | 420,537,485.54 | |
(2) Other important creditor's right investment
| Item | Balance at year-end | ||||
| Face value | Interest rate | Actual rate | Date of expiring | Overdue principal | |
| Fixed deposit | 250,000,000.00 | 3.05 | 3.05 | 2027-5-24 | |
| Fixed deposit | 150,000,000.00 | 2.70 | 2.70 | 2026-8-7 | |
| large deposit certificates | 150,000,000.00 | 3.15 | 3.15 | 2027-5-16 | |
| large deposit certificates | 100,000,000.00 | 2.60 | 2.60 | 2027-6-21 | |
| large deposit certificates | 80,000,000.00 | 3.35 | 3.35 | 2026-3-28 | |
| Subtotal | 730,000,000.00 | ||||
Continued
| Item | Balance at year-begin |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2024 to December 31, 2024（Unless other wise specified, RMB for record in the statement)
| Face value | Interest rate | Actual rate | Date of expiring | Overdue principal | |
| large deposit certificates | 100,000,000.00 | 3.20 | 3.20 | 2026-1-31 | |
| large deposit certificates | 80,000,000.00 | 3.35 | 3.35 | 2026-3-28 | |
| large deposit certificates | 50,000,000.00 | 3.30 | 3.30 | 2026-6-14 | |
| large deposit certificates | 50,000,000.00 | 3.10 | 3.10 | 2026-6-26 | |
| large deposit certificates | 30,000,000.00 | 3.30 | 3.30 | 2026-5-31 | |
| large deposit certificates | 30,000,000.00 | 3.20 | 3.20 | 2026-3-16 | |
| large deposit certificates | 25,000,000.00 | 3.25 | 3.20 | 2025-8-30 | |
| large deposit certificates | 25,000,000.00 | 3.30 | 3.20 | 2025-8-30 | |
| large deposit certificates | 20,000,000.00 | 3.15 | 3.15 | 2026-7-31 | |
| Subtotal | 410,000,000.00 |
14. Long-term equity investment
(1) Classification situation
| Item | Balance at year-end | ||
| Book balance | Impairment provision | Book value | |
| Associated companies | 84,608,551.82 | 3,097,405.00 | 81,511,146.82 |
| Total | 84,608,551.82 | 3,097,405.00 | 81,511,146.82 |
Continued
| Item | Balance at year-begin | ||
| Book balance | Impairment provision | Book value | |
| Associated companies | 112,745,811.75 | 112,745,811.75 | |
| Total | 112,745,811.75 | 112,745,811.75 | |
(2) Detail
| Invested | Balance at year-begin | Changes in Current Year |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2024 to December 31, 2024（Unless other wise specified, RMB for record in the statement)
| enterprise | Book value | Impairment provision | Additional investment | Disinvestment | Investment profit and loss confirmed by equity method | Other comprehensive income adjustment |
| Associated companies | ||||||
| Sichuan Zhiyijia Network Technology Co., Ltd. | 68,854,162.70 | 8,268,998.98 | ||||
| Hefei Xingmei Assets Management Co., Ltd. | 14,139,256.78 | 25,235.21 | ||||
| Chengdu Guigu Environmental Tech. Co., Ltd | 8,756,262.50 | -1,252,182.11 | ||||
| Sichuan Tianyou Guigu Technology Co., Ltd. | 2,948,859.23 | -184,548.86 | ||||
| .Sichuan HongyunVenture Investment Partnership（LP） | 18,047,270.54 | 18,000,000.00 | 104,729.46 | |||
| Hefei Xinmei Solar Energy Technology Co., Ltd | 2,202,871.20 | |||||
| Changhong Ruba Electric Company (Private) Ltd. | ||||||
| Total | 112,745,811.75 | 18,000,000.00 | 9,165,103.88 |
Continued
| Invested enterprise | Changes in Current Year | Balance at year-end | ||||
| Other changes of equity | Declaration of cash dividends or profits | Provision for impairment | Other | Book value | Impairment provision | |
| Associated companies | ||||||
| Sichuan Zhiyijia Network Technology Co., Ltd. | 16,947,492.61 | 60,175,669.07 | ||||
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2024 to December 31, 2024（Unless other wise specified, RMB for record in the statement)
| Invested enterprise | Changes in Current Year | Balance at year-end | ||||
| Other changes of equity | Declaration of cash dividends or profits | Provision for impairment | Other | Book value | Impairment provision | |
| Hefei Xingmei Assets Management Co., Ltd. | 14,164,491.99 | |||||
| Chengdu Guigu Environmental Tech. Co., Ltd | 3,008,655.00 | 4,495,425.39 | 3,008,655.00 | |||
| Sichuan Tianyou Guigu Technology Co., Ltd. | 88,750.00 | 2,675,560.37 | 88,750.00 | |||
| .Sichuan HongyunVenture Investment Partnership（LP） | 152,000.00 | |||||
| Hefei Xinmei Solar Energy Technology Co., Ltd | 2,202,871.20 | |||||
| Changhong Ruba Electric Company (Private) Ltd. | ||||||
| Total | 19,302,363.81 | 3,097,405.00 | 81,511,146.82 | 3,097,405.00 | ||
(3) Impairment test of long-term equity investment
| Item | Book value | Recoverable amount | Impairment amount accrued in this period |
| Chengdu Guigu Environmental Tech. Co., Ltd | 7,504,080.39 | 4,495,425.39 | 3,008,655.00 |
| Sichuan Tianyou Guigu Technology Co., Ltd. | 2,764,310.37 | 2,675,560.37 | 88,750.00 |
| Subtotal | 10,268,390.76 | 7,170,985.76 | 3,097,405.00 |
Continued
| Item | Number of years of forecast period | Key parameters of forecast period and their determination basis | Key parameters of stable period and their determination basis |
| Chengdu Guigu Environmental Tech. Co., Ltd | Half year | It is expected that liquidation will begin in July 2025, and the financial data from the balance sheet date to the liquidation time will be predicted, and the future recoverable amount will be determined in combination with the | Not applicable |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2024 to December 31, 2024（Unless other wise specified, RMB for record in the statement)
| Item | Number of years of forecast period | Key parameters of forecast period and their determination basis | Key parameters of stable period and their determination basis |
| estimated liquidation expenses | |||
| Sichuan Tianyou Guigu Technology Co., Ltd. | Half year | It is expected that liquidation will begin in July 2025, and the financial data from the balance sheet date to the liquidation time will be predicted, and the future recoverable amount will be determined in combination with the estimated liquidation expenses | Not applicable |
| Subtotal |
15. Other non-current financial assets
| Item | Ending balance | Opening balance |
| Sichuan Changhong Group Finance Co., Ltd. | 556,681,286.83 | 554,145,436.29 |
| Sichuan Hongyun New-Generation Information technology Venture Capital Fund Partnership (limited partnership) | 30,929,099.25 | 36,507,860.19 |
| Changhong Group Sichuan ShenwanHongyuan Strategic New Industrial Parent Fund Partnership (limited partnership) | 69,913,918.36 | 68,686,219.00 |
| Huishang Bank Co., Ltd. | 18,570,000.00 | 14,800,000.00 |
| Total | 676,094,304.44 | 674,139,515.48 |
16. Investment real estate
(1) Detail
| Item | House and buildings | Total |
| I.Original book value | ||
| Balance at year-begin | 62,361,143.47 | 62,361,143.47 |
| Increase in this year | 35,001,468.95 | 35,001,468.95 |
| 1) Transfer of fixed assets | 35,001,468.95 | 35,001,468.95 |
| Decrease in this year | ||
| Balance at year-end | 97,362,612.42 | 97,362,612.42 |
| Accumulated depreciation and accumulated amortization | ||
| Balance at year-begin | 11,440,655.76 | 11,440,655.76 |
| .Increase in this year | 19,201,105.97 | 19,201,105.97 |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2024 to December 31, 2024（Unless other wise specified, RMB for record in the statement)
| 1) Withdrawal or amortization | 1,978,095.75 | 1,978,095.75 |
| 2) Deprecation and transfer of fixed assets | 17,223,010.22 | 17,223,010.22 |
| Decrease in this year | ||
| Balance at year-end | 30,641,761.73 | 30,641,761.73 |
| Book value | ||
| Ending book value | 66,720,850.69 | 66,720,850.69 |
| Opening book value | 50,920,487.71 | 50,920,487.71 |
(2) Investment real estate without property certification held
| Item | Book value | Reasons for failing to complete property rights certificate |
| J03workshop | Book value | Related property rights in procedure |
| Subtotal | 17,727,364.92 |
17. Fixed assets
(1) Detail
| Item | Book value at year-end | Book value at year-begin |
| Fixed assets | 2,186,003,136.01 | 2,259,482,994.04 |
| Liquidation of fixed assets | 32,847,524.11 | 32,293,183.76 |
| Total | 2,218,850,660.12 | 2,291,776,177.80 |
(2) Fixed assets
(1) Detail
| Item | House and buildings | Machinery equipment | Transport equipment | Other equipment | Total |
| Original book value | |||||
| Balance at year-begin | 1,986,815,666.30 | 1,906,289,172.39 | 36,650,072.30 | 281,151,364.21 | 4,210,906,275.20 |
| Increase in this year | 4,993,904.65 | 189,915,198.45 | 5,523,240.42 | 48,287,841.75 | 248,720,185.27 |
| 1) Purchase | 14,959,107.15 | 1,077,495.97 | 3,987,932.29 | 20,024,535.41 | |
| 2) Construction in progress transfer-in | 4,370,084.62 | 173,874,253.73 | 4,445,744.45 | 44,205,796.63 | 226,895,879.43 |
| 3) Increase in foreign currency translation | 60,601.72 | 60,601.72 | |||
| 4) Other | 623,820.03 | 1,081,837.57 | 33,511.11 | 1,739,168.71 | |
| .Decrease in this year | 65,074,297.92 | 87,510,302.36 | 2,324,801.47 | 10,882,664.08 | 165,792,065.83 |
| 1) Dispose or | 60,787,180.53 | 1,896,962.34 | 9,496,848.24 | 72,180,991.11 |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2024 to December 31, 2024（Unless other wise specified, RMB for record in the statement)
| Item | House and buildings | Machinery equipment | Transport equipment | Other equipment | Total |
| retirement | |||||
| 2) Construction in progress transfer-in | 22,713,498.68 | 423,333.30 | 242,796.85 | 23,379,628.83 | |
| 3) Transfer investment real estate | 35,001,468.95 | 35,001,468.95 | |||
| 4) Decrease in foreign currency translation | 4,505.83 | 4,505.83 | |||
| 5) Other | 30,072,828.97 | 4,009,623.15 | 1,143,018.99 | 35,225,471.11 | |
| Balance at year-end | 1,926,735,273.03 | 2,008,694,068.48 | 39,848,511.25 | 318,556,541.88 | 4,293,834,394.64 |
| .Accumulated depreciation | |||||
| .Balance at year-begin | 611,809,867.87 | 1,164,231,721.95 | 25,939,684.97 | 142,820,391.82 | 1,944,801,666.61 |
| .Increase in this year | 64,100,197.87 | 149,702,411.26 | 2,561,167.88 | 32,276,169.77 | 248,639,946.78 |
| 1) Accrual | 64,016,036.73 | 148,747,448.58 | 2,561,167.88 | 32,225,148.78 | 247,549,801.97 |
| 2) Impact of foreign currency conversion | 50,750.56 | 50,750.56 | |||
| 3) Other | 84,161.14 | 954,962.68 | 270.43 | 1,039,394.25 | |
| Decrease in this year | 17,326,275.84 | 63,947,774.21 | 2,155,790.19 | 8,259,942.26 | 91,689,782.50 |
| 1) Dispose or retirement | 53,440,218.78 | 1,798,894.85 | 8,033,041.45 | 63,272,155.08 | |
| 2) Construction in progress transfer-in | 9,320,907.89 | 351,895.80 | 201,080.29 | 9,873,883.98 | |
| 3)Transfer investment real estate | 17,223,010.22 | 17,223,010.22 | |||
| 4) Impact of foreign currency conversion | 4,999.54 | 4,999.54 | |||
| 5) Other | 103,265.62 | 1,186,647.54 | 25,820.52 | 1,315,733.68 | |
| Balance at year-end | 658,583,789.90 | 1,249,986,359.00 | 26,345,062.66 | 166,836,619.33 | 2,101,751,830.89 |
| Impairment provision | |||||
| Balance at year-begin | 199,392.18 | 5,378,326.42 | 1,043,895.95 | 6,621,614.55 | |
| Increase in this year | |||||
| .Decrease in this year | 524,101.85 | 18,084.96 | 542,186.81 | ||
| 1) )Dispose or retirement | 516,900.44 | 18,084.96 | 534,985.40 | ||
| 2) Other | 7,201.41 | 7,201.41 |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2024 to December 31, 2024（Unless other wise specified, RMB for record in the statement)
| Item | House and buildings | Machinery equipment | Transport equipment | Other equipment | Total |
| Balance at year-end | 199,392.18 | 4,854,224.57 | 1,025,810.99 | 6,079,427.74 | |
| Book value | |||||
| .Ending book value | 1,267,952,090.95 | 753,853,484.91 | 13,503,448.59 | 150,694,111.56 | 2,186,003,136.01 |
| Opening book value | 1,374,806,406.25 | 736,679,124.02 | 10,710,387.33 | 137,287,076.44 | 2,259,482,994.04 |
2) Fixed assets temporary idle at year-end.
| Item | Original book value | Accumulated depreciation | Impairment provision | Book value | Remark |
| House and buildings | 823,277.88 | 252,088.41 | 199,392.18 | 371,797.29 | |
| Machinery equipment | 39,385,736.87 | 30,989,159.75 | 4,732,667.16 | 3,663,909.96 | |
| Transport equipment | 866,983.91 | 823,634.70 | 43,349.21 | ||
| Other | 2,721,454.57 | 2,555,965.98 | 29,415.81 | 136,072.78 | |
| Subtotal | 43,797,453.23 | 34,620,848.84 | 4,961,475.15 | 4,215,129.24 |
3) Fixed assets leased through operating lease at year-end
| Item | Original book value | Accumulated depreciation | Impairment provision | Book value | Remark |
| House and buildings | 113,862,815.88 | 49,563,207.96 | 64,299,607.92 | ||
| Machinery equipment | 24,069,771.36 | 14,068,782.52 | 10,000,988.84 | ||
| Other equipment | 290,703.88 | 284,096.33 | 6,607.55 | ||
| Total | 138,223,291.12 | 63,916,086.81 | 74,307,204.31 |
4) Fixed assets without property certificate
| Item | Book value | Reason of not complete the property certificate |
| J01workshop | 25,111,339.70 | Related property rights in procedure |
| Canopy | 1,473,562.66 | Related property rights in procedure |
| Connecting corridor | 3,054,589.49 | Related property rights in procedure |
| J02workshop | 27,092,611.16 | Related property rights in procedure |
| J09raw material warehouse | 6,006,540.59 | Related property rights in procedure |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2024 to December 31, 2024（Unless other wise specified, RMB for record in the statement)
| Item | Book value | Reason of not complete the property certificate |
| J19D guard room | 133,256.49 | Related property rights in procedure |
| J19E guard room | 133,256.49 | Related property rights in procedure |
| J08 packing materials warehouse | 4,169,409.45 | Related property rights in procedure |
| J50finished product warehouse | 15,623,863.61 | Related property rights in procedure |
| J51finished product warehouse | 15,159,508.88 | Related property rights in procedure |
| J53finished product warehouse | 11,503,048.93 | Related property rights in procedure |
| J54finished product warehouse | 10,751,165.10 | Related property rights in procedure |
| J55finished product warehouse | 9,912,153.77 | Related property rights in procedure |
| J56 finished product warehouse | 9,912,153.77 | Related property rights in procedure |
| J52finished product warehouse | 10,995,311.37 | Related property rights in procedure |
| J08 packing materials warehouse | 23,479,798.48 | Related property rights in procedure |
| Subtotal | 174,511,569.94 |
(3). Disposal of fixed assets
| Item | Amount at year-end | Amount at year-begin |
| Relevant assets disposal for reserved lands | 32,293,183.76 | 32,293,183.76 |
| Undisposed equipment | 554,340.35 | |
| Subtotal | 32,847,524.11 | 32,293,183.76 |
Pursuant to the urban planning requirements of Hefei Municipal Government and the Governmentof Feidong county, the land reserve center of Feidong county will purchase and store the land useright of an economic development zone located at Feidong county, Hefei city, which is owned bythe Company’s subordinate companies, Equator Electric and Equator Home Appliance,respectively, with an area of 19,245.09 sq.m. (Approximately 28.87 mu, Land Use RightCertificate No.: Dong Guo Yong (2008) No. 0366, the stated use of the land is for industrialpurpose) and an area of 46,161.9 sq.m. (Approximately 69.24 mu, Land Use Right Certificate No.:
Dong Guo Yong (2008) No. 0367, the stated use of the land is for industrial purpose). The totalconsideration for purchasing and storage is approximately 36 million yuan, of which theconsideration for the land use right owned by Equator Electric and Equator Home Appliance is
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2024 to December 31, 2024（Unless other wise specified, RMB for record in the statement)
approximately 10.59 million yuan and 25.41 million yuan, respectively. The Company hascompleted the relocation of occupants of the premises, and the net fixed assets in relation to theland will transfer as disposal, accounting treatment will be conduct in line with relevant rules uponreceiving of the relocation compensation.No impairment of relevant assets disposal for reserved lands at year-end.
18. Construction in progress
(1) Detail
| Item | Balance at year-end | Balance at year-begin |
| Construction in progress | 97,807,983.40 | 69,920,839.20 |
| Total | 97,807,983.40 | 69,920,839.20 |
(2) Construction in progress
1) Details of construction in progress
| Item | Amount at year-end | Amount at year-begin | ||||
| Book balance | Impairment provision | Book value | Book balance | Impairment provision | Book value | |
| Refrigerator Front-end Capacity Improvement Project of Hefei Manufacturing Base | 27,527,110.50 | 27,527,110.50 | ||||
| Capacity Improvement and Transformation Project of Air Conditioning Manufacturing System | 14,077,889.01 | 14,077,889.01 | 24,062,124.83 | 24,062,124.83 | ||
| Investment Project to Manufacturing Company by Washing Machine Business Department to Increase Production and Guarantee Supply in 2024 | 8,092,928.45 | 8,092,928.45 | ||||
| Zhongshan Changhong Technical Transformation Project | 6,432,519.38 | 6,432,519.38 | 7,036,680.59 | 7,036,680.59 | ||
| Extrusion and Crushing Capacity Improvement Demand Project of Hefei | 3,654,455.49 | 3,654,455.49 | 1,033,130.00 | 1,033,130.00 | ||
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2024 to December 31, 2024（Unless other wise specified, RMB for record in the statement)
| Item | Amount at year-end | Amount at year-begin | ||||
| Book balance | Impairment provision | Book value | Book balance | Impairment provision | Book value | |
| Refrigerator Manufacturing Company | ||||||
| Plastic Vacuum Forming Machine Project | 3,590,796.45 | 3,590,796.45 | 1,027,433.62 | 1,027,433.62 | ||
| Fixed Assets Project of 7 kg Supporting Production Equipment | 3,535,542.99 | 3,535,542.99 | 1,534,513.28 | 1,534,513.28 | ||
| Reconstruction of J05 Two-Device Workshop of Air Conditioning Company - Steel Platform Project | 3,447,901.14 | 3,447,901.14 | ||||
| To-be-installed Equipment Project | 2,774,000.00 | 2,774,000.00 | 2,003,069.71 | 2,003,069.71 | ||
| Door Shell Capacity Equipment Update Project | 1,947,251.99 | 1,947,251.99 | ||||
| Investment Project for Switching Technology Platform of Cabinet Air Conditioning Heat Exchanger | 1,686,232.80 | 1,686,232.80 | ||||
| Update Project of Multi-gun Feeding Equipment on the Back of Large Refrigerator | 1,446,902.65 | 1,446,902.65 | ||||
| Investment Project of Production Equipment for Inner Cylinder of Meiling Export Dryer | 1,441,592.92 | 1,441,592.92 | ||||
| New Flat Color Plate Door Shell Line Project | 397,699.12 | 397,699.12 | 2,155,584.07 | 2,155,584.07 | ||
| Construction Project of Liquid Nitrogen Tank Production Line | 23,349.06 | 23,349.06 | 680,956.02 | 680,956.02 | ||
| Relocation and Capacity Expansion Project of Meiling Extrusion Line | 339,115.04 | 339,115.04 | ||||
| Projects to improve the capacity and production efficiency of the washing machine manufacturing | 1,624,647.04 | 1,624,647.04 | ||||
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2024 to December 31, 2024（Unless other wise specified, RMB for record in the statement)
| Item | Amount at year-end | Amount at year-begin | ||||
| Book balance | Impairment provision | Book value | Book balance | Impairment provision | Book value | |
| company in the first quarter | ||||||
| Investment Project of Washing Machine Supporting Production Equipment | 617,699.12 | 617,699.12 | ||||
| Changhong Meiling Promotion Project of Industrial Internet | 5,563,207.57 | 5,563,207.57 | ||||
| Efficiency Improvement and Transformation Project of Large Refrigerators | 1,388,626.00 | 1,388,626.00 | ||||
| Adaptability Transformation Project of Fin Stamping Production Line and Its Supporting Equipment | 2,634,632.94 | 2,634,632.94 | ||||
| Rectification Project of Elevators and Fire Hazards in Charging Area of Finished Product Warehouse | 1,124,589.14 | 1,124,589.14 | ||||
| Transformation and Maintenance Project of Large Line for B-line Shift Recovery | 2,048,088.46 | 2,048,088.46 | ||||
| Manufacturing System Automation Project in 2023 | 1,113,002.29 | 1,113,002.29 | ||||
| Commercial Kitchen Refrigerator Cabinet Project | 1,894,989.00 | 1,894,989.00 | ||||
| Laboratory Investment Project | 627,076.10 | 627,076.10 | ||||
| Other project | 17,731,811.45 | 17,731,811.45 | 11,411,674.38 | 11,411,674.38 | ||
| Total | 97,807,983.40 | 97,807,983.40 | 69,920,839.20 | 69,920,839.20 | ||
2) Changes in significant construction in progress
| Projects | Budget | Book balance at period-begin | Increase in Current Period | Transfer to fixed assets in Current Period | Other decrease | Book balance at period-end |
| Front-end | 88,000,000.00 | 38,550,472.22 | 8,695,934.69 | 2,327,427.03 | 27,527,110.50 |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2024 to December 31, 2024（Unless other wise specified, RMB for record in the statement)
| Projects | Budget | Book balance at period-begin | Increase in Current Period | Transfer to fixed assets in Current Period | Other decrease | Book balance at period-end |
| expansion project of Hefei base with an annual output of refrigerator cabinets |
(Continued)
| Projects | Proportion of project investment in budget | Progress | Accumulated amount of interest capitalization | including: interest capitalized amount of Current Period | Interest capitalization rate of Current Period | Source of funds |
| Front-end expansion project of Hefei base with an annual output of refrigerator cabinets | 43.81 | 68.70 | Self-raised |
19. Right-of-use assets
| Item | House and buildings | Total |
| Original book value | ||
| Balance at year-begin | 43,077,219.46 | 43,077,219.46 |
| Increase in this year | 140,945,907.49 | 140,945,907.49 |
| (1) New lease | 140,945,907.49 | 140,945,907.49 |
| Decrease in this year | 51,808,320.42 | 51,808,320.42 |
| (1) Expiration of lease and change of contract | 51,693,396.83 | 51,693,396.83 |
| (2) Impact of foreign currency conversion | 114,923.59 | 114,923.59 |
| Balance at year-end | 132,214,806.53 | 132,214,806.53 |
| Accumulated depreciation | ||
| Balance at year-begin | 7,930,938.25 | 7,930,938.25 |
| Increase in this year | 13,591,410.48 | 13,591,410.48 |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2024 to December 31, 2024（Unless other wise specified, RMB for record in the statement)
| Item | House and buildings | Total |
| (1) )Accrual | 13,591,410.48 | 13,591,410.48 |
| . Decrease in this year | 3,091,732.98 | 3,091,732.98 |
| (1) Expiration of lease and change of contract | 3,079,341.96 | 3,079,341.96 |
| (2) Impact of foreign currency conversion | 12,391.02 | 12,391.02 |
| Balance at year-end | 18,430,615.75 | 18,430,615.75 |
| Book value | ||
| Ending book value | 113,784,190.78 | 113,784,190.78 |
| Opening book value | 35,146,281.21 | 35,146,281.21 |
The Company accrual the depreciation on right-of-use assets from the commencement date of thelease period. Depending on use of the assets, amount of accrual will included in costs of relevantassets or current gain/loss.
20. Intangible assets
(1) Detail
| Item | Land use right | Trademark special right | Non-patent technology | Patent technology | Other | Total |
| .Original book value | ||||||
| Balance at year-begin | 926,964,151.60 | 283,292,439.34 | 743,027,808.89 | 196,090,356.16 | 11,193,437.00 | 2,160,568,192.99 |
| Increase in this year | 115,842,290.70 | 114,343,648.32 | 660,622.64 | 230,846,561.66 | ||
| 1) Purchase | 1,828,141.58 | 281,000.00 | 2,109,141.58 | |||
| 2) Internal research | 114,014,149.12 | 114,343,648.32 | 228,357,797.44 | |||
| 3) Other | 379,622.64 | 379,622.64 | ||||
| Decrease in this year | 20,470,204.82 | 84,615.44 | 20,554,820.26 | |||
| 1)Dispose | 20,090,582.18 | 20,090,582.18 | ||||
| 2) Other | 379,622.64 | 84,615.44 | 464,238.08 | |||
| Balance at year-end | 926,964,151.60 | 283,292,439.34 | 838,399,894.77 | 310,434,004.48 | 11,769,444.20 | 2,370,859,934.39 |
| Accumulated amortization | ||||||
| Balance at year-begin | 251,860,307.11 | 283,292,439.34 | 550,293,846.69 | 76,940,491.50 | 4,235,458.67 | 1,166,622,543.31 |
| .Increase in this year | 19,663,819.27 | 91,207,638.03 | 38,162,340.12 | 1,371,805.93 | 150,405,603.35 |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2024 to December 31, 2024（Unless other wise specified, RMB for record in the statement)
| Item | Land use right | Trademark special right | Non-patent technology | Patent technology | Other | Total |
| .Original book value | ||||||
| 1) )Accrual | 19,663,819.27 | 91,207,638.03 | 38,162,340.12 | 1,087,088.97 | 150,120,886.39 | |
| 2) Other | 284,716.96 | 284,716.96 | ||||
| Decrease in this year | 15,718,530.66 | 15,718,530.66 | ||||
| 1) Dispose | 15,433,813.70 | 15,433,813.70 | ||||
| 2) Other | 284,716.96 | 284,716.96 | ||||
| Balance at year-end | 271,524,126.38 | 283,292,439.34 | 625,782,954.06 | 115,102,831.62 | 5,607,264.60 | 1,301,309,616.00 |
| .Impairment provision | ||||||
| Balance at year-begin | 41,003,993.41 | 18,291,161.97 | 4,508,495.33 | 63,803,650.71 | ||
| Balance at year-end | 12,095,041.19 | 3,655,520.53 | 15,750,561.72 | |||
| 1) Accrual | 12,095,041.19 | 3,655,520.53 | 15,750,561.72 | |||
| Decrease in this year | 4,050,099.37 | 383,760.72 | 4,433,860.09 | |||
| 1) Dispose | 4,050,099.37 | 4,050,099.37 | ||||
| 2) Other | 383,760.72 | 383,760.72 | ||||
| Balance at year-end | 49,048,935.23 | 21,946,682.50 | 4,124,734.61 | 75,120,352.34 | ||
| Book value | ||||||
| Ending book value | 655,440,025.22 | 163,568,005.48 | 173,384,490.36 | 2,037,444.99 | 994,429,966.05 | |
| Opening book value | 675,103,844.49 | 151,729,968.79 | 100,858,702.69 | 2,449,483.00 | 930,141,998.97 |
The intangible assets resulted from internal research takes 9.63% of the balance of intangibleassets at year-end
(2) Intangible assets impairment text
| Item | Book value | Recoverable amount | Impairment amount |
| Non-patent technology | 9,241,832.80 | 2,939,427.92 | 6,302,404.88 |
| Non-patent technology | 5,792,636.31 | 5,792,636.31 | |
| Patent technology | 4,075,343.94 | 419,823.41 | 3,655,520.53 |
| Subtotal | 19,109,813.05 | 3,359,251.33 | 15,750,561.72 |
(Continued)
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2024 to December 31, 2024（Unless other wise specified, RMB for record in the statement)
| Item | Number of years of forecast period | Key parameters of forecast period and their determination basis | Key parameters of stable period and their determination basis |
| Non-patent technology | 3 | Sales volume, revenue, and cost; Determine based on comprehensive analysis of enterprise budget and development plan | Sales volume, revenue, and cost; Determine based on comprehensive analysis of enterprise budget and development plan |
| Non-patent technology | 5 | Sales volume, revenue, and cost; Determine based on comprehensive analysis of enterprise budget and development plan | Sales volume, revenue, and cost; Determine based on comprehensive analysis of enterprise budget and development plan |
| Patent technology | 5 | Sales volume, revenue, and cost; Determine based on comprehensive analysis of enterprise budget and development plan | Sales volume, revenue, and cost; Determine based on comprehensive analysis of enterprise budget and development plan |
| Subtotal |
21. Development expense
| Item | Amount at year-end | Amount at year-begin | ||||
| Book balance | Impairment provision | Book value | Book balance | Impairment provision | Book value | |
| Technology development for Air-conditioner | 35,786,399.85 | 35,786,399.85 | 38,042,546.27 | 38,042,546.27 | ||
| Technology development for refrigerator | 38,924,294.89 | 38,924,294.89 | 59,134,989.07 | 59,134,989.07 | ||
| Total | 74,710,694.74 | 74,710,694.74 | 97,177,535.34 | 97,177,535.34 | ||
22. Goodwill
(1) Original value of goodwill
| Invested enterprise | Opening balance | Formation from enterprise merger | Decrease this year | Balance at year-end | |
| Dispose | Other | ||||
| Hefei Meiling Group Holdings Limited | 3,553,367.77 | 3,553,367.77 | |||
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2024 to December 31, 2024（Unless other wise specified, RMB for record in the statement)
| Invested enterprise | Opening balance | Formation from enterprise merger | Decrease this year | Balance at year-end | |
| Dispose | Other | ||||
| Total | 3,553,367.77 | 3,553,367.77 | |||
(2) Impairment loss of goodwill
| Invested enterprise | Opening balance | Increase this period | Decrease this period | Ending balance | ||
| Accrual | Other | Accrual | Other | |||
| Hefei Meiling Group Holdings Limited | 3,553,367.77 | 3,553,367.77 | ||||
| Total | 3,553,367.77 | 3,553,367.77 | ||||
23. Long-term prepaid expenses
| Item | Opening balance | Increase this period | Amortization for the period | Other decreases | Ending balance | |
| Fixed assets overhaul | 33,216,682.07 | 12,912,594.08 | 15,025,844.20 | 331,197.44 | 30,772,234.51 | |
| Rental plant decoration project | 2,308,827.63 | 1,215,902.27 | 960,192.18 | 2,564,537.72 | ||
| Technical support project of vaccine traceability date interface | 172,955.92 | 172,955.92 | ||||
| Total | 35,698,465.62 | 14,128,496.35 | 16,158,992.30 | 331,197.44 | 33,336,772.23 |
24. Deferred tax assets and deferred tax liabilities
(1) Deferred income tax assets without the offset
| Item | Ending balance | Opening balance | ||
| Deductible temporary difference | Deferred income tax assets | Deductible temporary difference | Deferred income tax assets | |
| Deduction of loss | 360,864,560.75 | 54,129,684.11 | 575,117,840.02 | 86,267,676.00 |
| Asset impairment provision | 338,637,346.07 | 51,171,867.09 | 313,597,900.75 | 47,114,940.66 |
| Lease liabilities | 121,116,910.59 | 18,556,500.32 | 35,460,065.89 | 4,786,118.44 |
| Changes in fair value | 156,334,600.79 | 23,450,190.12 | 323,557.50 | 48,533.63 |
| Deferred income | 77,980,146.46 | 11,697,021.96 | 89,179,865.35 | 13,376,979.81 |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2024 to December 31, 2024（Unless other wise specified, RMB for record in the statement)
| Item | Ending balance | Opening balance | ||
| Deductible temporary difference | Deferred income tax assets | Deductible temporary difference | Deferred income tax assets | |
| Estimated liability | 44,310,978.00 | 6,994,965.59 | 31,904,790.39 | 4,785,718.56 |
| Dismission welfare | 12,394,842.89 | 1,859,226.44 | 13,940,576.25 | 2,091,086.44 |
| Witholding expenses | 6,624,971.58 | 1,387,454.96 | 6,464,906.83 | 1,367,611.03 |
| Deferred income tax assets recognized for development expenditure | 51,380,204.58 | 7,707,030.68 | ||
| Total | 1,169,644,561.71 | 176,953,941.27 | 1,065,989,502.98 | 159,838,664.57 |
(2) Deferred income tax liabilities without the offset
| Item | Ending balance | Opening balance | ||
| Taxable temporary differences | Deferred income tax liability | Taxable temporary differences | Deferred income tax liability | |
| Recognized by changes in fair value | 143,241,777.44 | 21,486,266.61 | 72,922,565.81 | 10,938,384.87 |
| Right to use assets | 112,973,204.23 | 17,323,066.27 | 35,146,281.21 | 4,804,068.40 |
| Recognized by fixed assets depreciation | 35,081,399.76 | 5,263,260.42 | 25,632,968.47 | 3,844,945.25 |
| Total | 291,296,381.43 | 44,072,593.30 | 133,701,815.49 | 19,587,398.52 |
(3) Details of unrecognized deferred income tax assets
| Item | Ending balance | Opening balance |
| Deductible temporary difference | 175,445,032.54 | 159,322,703.86 |
| Deductible loss | 204,180,133.57 | 258,387,040.61 |
| Total | 379,625,166.11 | 417,709,744.47 |
25. Other non-current assets
| Item | Amount at year-end | Amount at year-begin | ||||
| Book balance | Impairment provision | Book value | Book balance | Impairment provision | Book value | |
| Prepaid engineering, | 276,000.00 | 276,000.00 | ||||
| Prepaid equipment | 9,704,450.56 | 9,704,450.56 | 15,299,373.85 | 15,299,373.85 | ||
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2024 to December 31, 2024（Unless other wise specified, RMB for record in the statement)
| Item | Amount at year-end | Amount at year-begin | ||||
| Book balance | Impairment provision | Book value | Book balance | Impairment provision | Book value | |
| Warranty money due within one year | 9,623,211.67 | 530,000.00 | 9,093,211.67 | 11,955,960.50 | 653,720.00 | 11,302,240.50 |
| Total | 19,603,662.23 | 530,000.00 | 19,073,662.23 | 27,255,334.35 | 653,720.00 | 26,601,614.35 |
26.Assets with restricted ownership or use right
| Item | Book Balance | Book value | Restriction type | Restriction information |
| Monetary funds | 510,680,650.07 | 510,680,650.07 | Frozen | Security deposit; Frozen for litigation |
| Receivable financing | 584,233,204.78 | 584,233,204.78 | Pledge | Pledge for issuing bank acceptance bills |
| Total | 1,094,913,854.85 | 1,094,913,854.85 |
(Continued from the table above)
| Item | Book Balance | Book value | Restriction type | Restriction information |
| Monetary funds | 440,543,697.92 | 440,543,697.92 | ||
| Accounts receivable financing | 997,291,535.93 | 997,291,535.93 | freeze | bond; Frozen due to litigation |
| fixed assets | 478,732,601.33 | 321,209,491.52 | pledge | Used for issuing bank acceptance bills as collateral |
| intangible assets | 415,797,056.93 | 264,252,595.08 | mortgage | Apply for loan mortgage |
| Investment real estate | 5,795,017.72 | 3,097,441.68 | mortgage | Apply for loan mortgage |
| total | 2,338,159,909.83 | 2,026,394,762.13 |
27. Short-term loans
| Category | Ending balance | Opening balance |
| Loan in credit | 750,608,522.12 | 1,128,967,080.14 |
| Pledge loan | 16,000,000.00 | |
| Guaranteed loan | 5,000,000.00 | |
| Interest payable | 138,763.89 | 135,338.89 |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2024 to December 31, 2024（Unless other wise specified, RMB for record in the statement)
| Category | Ending balance | Opening balance |
| Total | 766,747,286.01 | 1,134,102,419.03 |
28. Trading financial liability
| Item | Closing balance | Opening balance |
| Trading financial liability | 32,229,012.86 | |
| Including: Derivative financial liability | 32,229,012.86 | |
| Total | 32,229,012.86 |
29. Derivative financial liabilities
| project | Closing balance | Opening balance |
| forward exchange contract | 156,359,680.92 | |
| total | 156,359,680.92 |
30. Note payable
| Type | Balance at year-end | Balance at year-begin |
| Bank acceptance | 6,418,137,195.82 | 5,610,344,422.69 |
| Trade acceptance | 870,829,729.52 | |
| Commercial Acceptance Bill | 645,158,510.31 | 300,072,867.42 |
| Total | 7,934,125,435.65 | 5,910,417,290.11 |
31. Account payable
(1) Detail
| Item | Amount at year-end | Amount at year-begin |
| Within 1 year | 6,045,137,505.31 | 3,811,958,127.23 |
| Amount aged over 1 year | 86,883,083.10 | 88,566,717.50 |
| Total | 6,132,020,588.41 | 3,900,524,844.73 |
(2) Major account payable with over one year book age at year-end.:N/A
32.Received in advance.
| Category | Amount at year-end | Amount at year-begin |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2024 to December 31, 2024（Unless other wise specified, RMB for record in the statement)
| Category | Amount at year-end | Amount at year-begin |
| Rent received in advance | 11,085.70 | 55,949.90 |
| Total | 11,085.70 | 55,949.90 |
33. Contract liabilities
(1) Detail
| Item | Balance at year-end | Balance at year-begin |
| Within 1 year | 583,600,476.83 | 362,934,770.50 |
| Over 1 year | 26,137,394.41 | 42,798,867.76 |
| Total | 609,737,871.24 | 405,733,638.26 |
(2) Major contract liabilities with over one year book age at year-end.: N/A
(3) Amount and reasons for major changes in book value during the reporting period
| Item | Change amount | Reason |
| Goods | 204,004,232.98 | Advance payment for goods increased |
| Total | 204,004,232.98 |
34. Wages payable
(1) Detail
| Item | Balance at year-begin | Increase this year | Decrease this year | Balance at year-end |
| Short-term compensation | 438,369,579.20 | 1,930,190,966.10 | 1,984,122,640.50 | 384,437,904.80 |
| After-service welfare- defined contribution plans | 1,752,993.49 | 148,057,949.72 | 148,410,427.62 | 1,400,515.59 |
| Dismiss welfare | 4,463,322.29 | 5,669,237.45 | 6,018,202.67 | 4,114,357.07 |
| Total | 444,585,894.98 | 2,083,918,153.27 | 2,138,551,270.79 | 389,952,777.46 |
(2) Short-term compensation
| Item | Balance at year-begin | Increase this year | Decrease this year | Balance at year-end |
| Wages, bonuses, allowances and subsidies | 430,145,684.21 | 1,726,001,349.96 | 1,781,303,808.76 | 374,843,225.41 |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2024 to December 31, 2024（Unless other wise specified, RMB for record in the statement)
| Item | Balance at year-begin | Increase this year | Decrease this year | Balance at year-end |
| Welfare for workers and staff | 557,735.88 | 54,953,299.76 | 54,617,192.77 | 893,842.87 |
| Social insurance | 1,701,031.21 | 63,386,832.93 | 63,630,447.52 | 1,457,416.62 |
| Including: Medical insurance | 1,671,812.10 | 57,958,925.64 | 58,196,974.93 | 1,433,762.81 |
| Work injury insurance | 29,219.11 | 5,427,907.29 | 5,433,472.59 | 23,653.81 |
| Housing accumulation fund | 5,451,792.24 | 78,836,424.65 | 78,735,630.00 | 5,552,586.89 |
| Labor union expenditure and personnel education expense | 513,335.66 | 7,013,058.80 | 5,835,561.45 | 1,690,833.01 |
| Total | 438,369,579.20 | 1,930,190,966.10 | 1,984,122,640.50 | 384,437,904.80 |
(3) Defined contribution plans
| Item | Balance at year-begin | Increase this year | Decrease this year | Balance at year-end |
| Basic endowment insurance | 598,361.39 | 142,927,254.43 | 142,810,804.27 | 714,811.55 |
| Unemployment insurance | 1,154,632.10 | 5,130,695.29 | 5,599,623.35 | 685,704.04 |
| Total | 1,752,993.49 | 148,057,949.72 | 148,410,427.62 | 1,400,515.59 |
35. Tax payable
| Item | Balance at year-end | Balance at year-begin |
| Enterprise income tax | 37,295,721.67 | 22,442,997.30 |
| VAT | 18,736,805.30 | 16,639,990.58 |
| Individual income tax | 10,765,426.61 | 9,049,531.30 |
| Urban maintenance and construction tax | 9,332,329.70 | 8,813,777.65 |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2024 to December 31, 2024（Unless other wise specified, RMB for record in the statement)
| Item | Balance at year-end | Balance at year-begin |
| Educational surtax | 6,751,533.75 | 6,398,148.77 |
| Stamp tax | 5,165,439.65 | 4,295,452.50 |
| Real estate tax | 4,547,226.68 | 4,421,430.56 |
| Land use tax | 1,752,087.81 | 1,752,087.77 |
| Other local taxes | 1,524,968.81 | 2,971,284.02 |
| Treatment fund for abandon electrics & electronics | 16,436,695.00 | |
| Total | 95,871,539.98 | 93,221,395.45 |
36. Other account payable
(1) Detail
| Item | Balance at year-end | Balance at year-begin |
| Dividend payable | 6,005,989.72 | 5,384,407.44 |
| Other account payable | 1,025,433,422.81 | 882,043,954.97 |
| Total | 1,031,439,412.53 | 887,428,362.41 |
(2)Dividend payable
| Item | Balance at year-end | Balance at year-begin |
| China Life Insurance (Group) Company | 43,992.07 | 288,404.82 |
| The People’s Insurance Company (Group) of China Limited | 65,987.57 | 432,607.23 |
| Bank of Communications-Fuguo Tianyi Value Securities Investment Fund | 153,697.50 | 153,697.50 |
| Hefei Branch of Bank of China | 631,013.60 | 446,576.60 |
| Hefei Collective Industrial Association | 631,012.60 | 446,575.90 |
| Provincial trust and investment company Wuhu office | 504,810.90 | 357,261.30 |
| Other | 3,975,475.48 | 3,259,284.09 |
| Total | 6,005,989.72 | 5,384,407.44 |
(3) Other account payable by nature
| Nature | Balance at year-end | Balance at year-begin |
| Accrued expenses | 503,726,134.42 | 382,265,202.45 |
| Receivables received temporary and deducted temporary | 6,356,898.80 | 13,212,983.35 |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2024 to December 31, 2024（Unless other wise specified, RMB for record in the statement)
| Nature | Balance at year-end | Balance at year-begin |
| Deposit, margin | 170,587,261.56 | 171,636,107.69 |
| Related parties | 312,082,468.47 | 285,904,610.83 |
| Other | 32,680,659.56 | 29,025,050.65 |
| Total | 1,025,433,422.81 | 882,043,954.97 |
37. Non-current liability due within one year
| Item | Balance at year-end | Balance at year-begin |
| Long-term loan principal and interest due within one year | 9,844,660.00 | 40,172,155.56 |
| Lease liabilities due within one year | 19,290,504.68 | 6,483,257.35 |
| Total | 29,135,164.68 | 46,655,412.91 |
38. Other current liabilities
| Item | Balance at year-end | Balance at year-begin |
| Tax to be resold | 18,610,598.53 | 18,920,057.53 |
| Factoring fees payable | 5,213,790.97 | 218,335.59 |
| Supply chain bill reversal | 38,674.50 | |
| Total | 23,824,389.50 | 19,177,067.62 |
39. Long term borrowings
| Item | Ending balance | Amount at year-begin |
| Loan in mortgage | 108,000,000.00 | |
| Total | 108,000,000.00 |
40. Lease liability
| Item | Balance at year-end | Balance at year-begin |
| Lease prepayment | 119,266,218.75 | 34,691,151.02 |
| Less：Unrecognized financing charges | 17,439,812.84 | 5,714,342.48 |
| Total | 101,826,405.91 | 28,976,808.54 |
41. Long-term payable
(1) Detail
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2024 to December 31, 2024（Unless other wise specified, RMB for record in the statement)
| Item | Balance at year-end | Balance at year-begin |
| Special payable | 455,409.20 | 800,347.84 |
| Total | 455,409.20 | 800,347.84 |
(2) Special payable
| Item | Balance at year-begin | Increase this year | Decrease this year | Balance at year-end |
| Special funds for technological transformation from Zhongshan Changhong | 800,347.84 | 344,938.64 | 455,409.20 | |
| Subtotal | 800,347.84 | 344,938.64 | 455,409.20 |
42. Long-term wage payable
| Item | Balance at year-end | Balance at year-begin |
| Dismissal welfare | 10,195,289.45 | 11,497,075.82 |
| Total | 10,195,289.45 | 11,497,075.82 |
43. Accrual liability
| Item | Balance at year-end | Balance at year-begin |
| Product quality guarantee note1 | 41,657,177.57 | 29,939,918.07 |
| Litigation matters note2 | 3,373,239.65 | 2,114,872.32 |
| Total | 45,030,417.22 | 32,054,790.39 |
Note 1: Product quality deposit is the maintenance expense provided by the Company under thenational policy.Note 2: In November 2021, Zhejiang Teruisi Pharmaceutical Inc. filed a lawsuit against ZhongkeMeiling for the "Cold Storage Design, Equipment Purchase and Installation ConstructionContract". Currently, quality of the subject under the contract is being authenticated by a thirdparty engineering quality appraisal agency, the initial start-up operation test is now completed.Zhongke Meiling intends to maintain the cold storage project, and the estimated maintenance costis 1,720,534.42 yuan.he management raised a total of 1,652,705.23 yuan against other operatinglawsuits
44. Deferred income
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2024 to December 31, 2024（Unless other wise specified, RMB for record in the statement)
| Item | Balance at year-begin | Increase this year | Decrease this year | Balance at year-end | Reason |
| Subsidies of development project | 102,040,223.27 | 23,346,500.00 | 28,234,866.43 | 97,151,856.84 | Government subsidies |
| Subsidies of Relocation | 30,937,271.06 | 2,653,950.00 | 28,283,321.06 | Government subsidies | |
| Total | 132,977,494.33 | 23,346,500.00 | 30,888,816.43 | 125,435,177.90 |
45. Share capital
| Item | Opening balance | Change during the period (+、-) | Ending balance | ||||
| New shares issued | Bonus share | Shares transferred from capital reserve | Other | Subtotal | |||
| Total shares | 1,029,923,715.00 | 1,029,923,715.00 | |||||
46. Capital reserve
(1) Detail
| Item | Opening balance | Increase this period | Decrease this period | Ending balance |
| Share premium | 3,077,460,366.37 | 375,033,242.38 | 2,702,427,123.99 | |
| Other capital reserve | 48,043,091.40 | 48,043,091.40 | ||
| Total | 3,125,503,457.77 | 375,033,242.38 | 2,750,470,215.39 |
(2) Other note
The change of capital reserve in this period is mainly due to the Company's acquisition of theequity of its subsidiary Hefei Changhong Industry Co., Ltd. under the same control.
47. Other comprehensive income
| Item | Balance at year-begin | Current Year | Balance at year-end | |
| Net after-tax amount of other comprehensive income | Less: | |||
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2024 to December 31, 2024（Unless other wise specified, RMB for record in the statement)
| Account before income tax in Current Year | Less: written in other comprehensive income in previous period and carried forward to gains and losses in current period | Less：Income tax expenses | Belong to parent company after tax | Belong to minority shareholders after tax | previously included in other comprehensive income, transferred to retained earnings in the current period (after tax attributable to the parent company) | |||
| Reclassify other comprehensive income into profit or loss | -20,704,362.05 | -465,244.39 | -518,057.63 | 52,813.24 | -21,222,419.68 | |||
| Including: Conversion difference arising from foreign currency financial statement | -20,704,362.05 | -465,244.39 | -518,057.63 | 52,813.24 | -21,222,419.68 | |||
| Total | -20,704,362.05 | -465,244.39 | -518,057.63 | 52,813.24 | -21,222,419.68 |
48.Special reserves
(1)Detail
| Item | Amount at year-begin | Increase this year | Decrease this year | Amount at year-end |
| Safety production costs | 11,246,811.91 | 40,415,747.60 | 30,694,385.92 | 20,968,173.59 |
| Total | 11,246,811.91 | 40,415,747.60 | 30,694,385.92 | 20,968,173.59 |
(2) Other note
Note: This year's increase refers to the work safety expenses accrued according to the notice
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2024 to December 31, 2024（Unless other wise specified, RMB for record in the statement)
issued by the Ministry of Finance on November 21, 2022 on printing and distributing theAdministrative Measures for the Extraction and Use of Work Safety Expenses of Enterprises (CZ[2022] No.136).
49. Surplus reserves
(1) Detail
| Item | Amount at year-begin | Increase this year | Decrease this year | Amount at year-end |
| Statutory surplus reserve | 361,445,492.66 | 25,400,876.20 | 386,846,368.86 | |
| Discretionary surplus reserve | 115,607,702.16 | 115,607,702.16 | ||
| Total | 477,053,194.82 | 25,400,876.20 | 502,454,071.02 |
(2) Other note
The increase in this period is due to the statutory surplus reserve accrued by 10% of the parentcompany's net profit.
50. Retained profit
(1) Detail
| Item | Current Year | Last Year |
| Undistributed profit at the end of the previous period before adjustment | 1,521,759,836.64 | 909,082,037.66 |
| Adjust the total amount of undistributed profits at the beginning of the period | -83,444,712.70 | -78,068,072.70 |
| Adjust the initial undistributed profits in the later stage | 1,438,315,123.94 | 831,013,964.96 |
| Add: Net profit attributable to the owners of the parent company for the current period | 699,270,051.82 | 735,828,796.67 |
| Less: withdraw of statutory surplus reserve | 25,400,876.20 | 35,834,503.34 |
| Withdraw of general risk provision | ||
| Dividend payable for ordinary shares | 308,977,114.50 | 92,693,134.35 |
| Balance at year-end | 1,803,207,185.06 | 1,438,315,123.94 |
(2) Adjustment of the details of undistributed profits at the beginning of the period
The change of consolidation scope caused by the same control affects the undistributed profitat the beginning of the period RMB -83,444,712.70.
(II)Item notes of the consolidated profit statement
1. Operation income and operation cost
(1)Detail
| Item | Current Year | Last Year |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2024 to December 31, 2024（Unless other wise specified, RMB for record in the statement)
| Income | Cost | Income | Cost | |
| Main business | 28,335,360,230.42 | 25,262,724,426.57 | 24,128,954,793.41 | 20,979,329,606.68 |
| Other business | 265,675,784.54 | 148,550,776.70 | 249,019,593.53 | 154,946,956.14 |
| Total | 28,601,036,014.96 | 25,411,275,203.27 | 24,377,974,386.94 | 21,134,276,562.82 |
(2) The decomposition information of operation income and operation cost
| Type | Current Year | Last Year | ||
| Income | Cost | Income | Cost | |
| Product | ||||
| Including：Air-conditioning | 15,407,055,870.21 | 14,334,050,593.14 | 11,566,440,523.53 | 10,553,796,367.40 |
| Refrigerator, Freezer | 9,560,071,716.63 | 8,085,319,070.60 | 9,088,215,517.67 | 7,459,217,140.19 |
| Washing machine | 1,746,832,584.10 | 1,444,516,804.89 | 1,329,017,674.88 | 1,103,161,215.02 |
| Small household appliances and kitchen and bathroom | 1,491,831,582.42 | 1,304,824,476.33 | 1,849,440,139.12 | 1,625,597,604.62 |
| Other product | 129,568,477.06 | 94,013,481.61 | 295,840,938.21 | 237,557,279.45 |
| Other business | 265,675,784.54 | 148,550,776.70 | 249,019,593.53 | 154,946,956.14 |
| Area | ||||
| Including: Domestic | 18,352,947,530.79 | 16,206,086,697.44 | 16,772,667,160.17 | 14,534,302,232.34 |
| Overseas | 10,248,088,484.17 | 9,205,188,505.83 | 7,605,307,226.77 | 6,599,974,330.48 |
| Subtotal | 28,601,036,014.96 | 25,411,275,203.27 | 24,377,974,386.94 | 21,134,276,562.82 |
(3)Information related to the transaction price allocated to the remaining performance obligationsOn December 31, 2024, the income corresponding to the performance obligations that have beensigned but not yet fulfilled or not yet fully fulfilled is RMB 74,542,459.76, of which RMB74,542,459.76 is expected to be recognized in 2025.
2. Business tax and extra charges
| Item | Current Year | Last Year |
| City construction tax | 25,914,199.06 | 30,631,637.08 |
| Real estate tax | 25,461,294.25 | 25,176,737.11 |
| Stamp duty | 24,703,855.76 | 20,280,757.53 |
| Education surcharge | 19,726,338.56 | 23,303,329.57 |
| Land use tax | 9,127,558.32 | 9,128,146.80 |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2024 to December 31, 2024（Unless other wise specified, RMB for record in the statement)
| Item | Current Year | Last Year |
| Water fund | 7,737,529.88 | 7,728,166.29 |
| Treatment fund for abandon electrics & electronics | 83,956,488.00 | |
| Other | 72,125.15 | 22,551.89 |
| Total | 112,742,900.98 | 200,227,814.27 |
3. Sales expense
| Item | Current Year | Last Year |
| Salary, extra charges and labor service expenses | 576,155,784.54 | 652,507,519.61 |
| Market support expenses | 351,459,135.82 | 299,985,325.55 |
| Shipping and Installation expense | 185,363,073.10 | 170,138,310.70 |
| Storage lease expenses | 129,398,876.12 | 99,071,460.40 |
| Insurance | 49,096,523.31 | 34,655,440.67 |
| Travelling expenses | 27,486,626.86 | 28,183,664.81 |
| Three fee | 15,860,631.14 | 32,226,527.64 |
| Business activity expenses | 15,368,031.16 | 16,818,583.84 |
| Vehicle expenses | 14,708,517.19 | 13,438,130.42 |
| Service | 8,789,029.44 | 16,695,232.90 |
| Depreciation expenses | 7,844,732.52 | 8,123,955.41 |
| Other | 95,623,082.18 | 51,943,866.77 |
| Total | 1,477,154,043.38 | 1,423,788,018.72 |
4. Administration expense
| Item | Current Year | Last Year |
| Salary and social insurance etc. | 198,437,769.99 | 234,911,595.10 |
| Depreciation | 45,919,238.84 | 45,622,889.34 |
| Software use | 22,466,676.77 | 12,408,011.23 |
| Water and electricity fee | 9,289,865.46 | 6,526,175.82 |
| Employment guarantee fund for the disabled | 8,447,278.23 | 7,230,460.80 |
| Service | 8,312,503.04 | 6,004,749.22 |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2024 to December 31, 2024（Unless other wise specified, RMB for record in the statement)
| Item | Current Year | Last Year |
| Property insurance | 7,188,254.55 | 6,220,209.31 |
| Other low-value consumables amortization | 6,003,814.88 | 1,087,977.03 |
| Engineering maintenance fee | 5,994,580.74 | 3,547,756.90 |
| Safety in production | 5,079,502.47 | 4,936,056.08 |
| Domestic travelling fee | 4,070,311.00 | 3,868,355.25 |
| Other | 38,462,744.23 | 39,566,649.36 |
| Total | 359,672,540.20 | 371,930,885.44 |
5. R&D expenses
| Item | Current Year | Last Year |
| Salary and social insurance etc. | 268,361,918.57 | 289,259,184.48 |
| Amortized intangible assets | 196,665,452.62 | 175,442,949.00 |
| Trial fee of R&D | 90,943,254.33 | 76,386,928.59 |
| Inspection and authentication fee | 18,549,348.84 | 17,003,613.90 |
| Other expenses | 62,722,259.47 | 39,436,679.87 |
| Total | 637,242,233.83 | 597,529,355.84 |
6. Financial expenses
| Item | Current Year | Last Year |
| Interest expenditure | 21,059,820.87 | 31,212,055.56 |
| Less: Interest income | 182,415,110.59 | 193,136,304.82 |
| Add: exchange loss | 670,047.10 | 54,126,655.77 |
| Discount expenditure | -27,355,384.73 | -27,110,900.70 |
| Handling fee expenditure | 16,017,052.87 | 13,591,856.02 |
| Interest expense on lease liability | 3,480,179.14 | 866,829.13 |
| Total | -168,543,395.34 | -120,449,809.04 |
7. Other income
| Item | Current amount | Amount of the same period last year | Amount included in current non-recurring gains and losses |
| Government subsidies related to assets | 31,233,755.07 | 30,780,817.58 | 31,233,755.07 |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2024 to December 31, 2024（Unless other wise specified, RMB for record in the statement)
| Item | Current amount | Amount of the same period last year | Amount included in current non-recurring gains and losses |
| Government subsidies related to income | 63,679,326.83 | 49,409,103.14 | 63,679,326.83 |
| Refund of handling fee for personal income tax withheld | 767,204.01 | 515,213.04 | |
| Additional VAT deduction | 92,050,712.81 | 56,552,366.70 | |
| VAT will be refunded upon collection | 8,340,088.82 | 9,415,201.81 | |
| Total | 196,071,087.54 | 146,672,702.27 | 94,913,081.90 |
8. Investment income
| Item | Current Year | Last Year |
| Long-term equity investment income by equity method | 9,165,103.88 | 19,133,884.40 |
| Disposition of the investment income generated by the long-term equity investment | 22,760.28 | |
| Investment income of other non-current financial assets during holding period | 14,911,850.55 | 12,932,690.90 |
| Investment income obtained from the disposal of trading financial assets | 35,122,865.42 | -21,761,889.37 |
| Investment income obtained from disposal of derivative financial assets | -17,541,274.69 | |
| Interest income from debt investment during the holding period | 32,712,969.75 | 20,057,997.72 |
| The termination of income recognition for financial assets measured by amortized cost | -38,661,658.21 | -22,489,932.70 |
| Total | 35,709,856.70 | 7,895,511.23 |
9. Changes in fair value gains
| Item | Current Period | Last Period |
| Trading financial assets | -18,695,483.36 | |
| Including :Income of fair value changes from derivative financial instruments | -18,695,483.36 | |
| Derivative financial assets | 32,773,626.80 | |
| Among them: Income from fair value changes generated by derivative financial instruments | 32,773,626.80 | |
| Trading financial liability | 9,732,511.92 | |
| Including: Income of fair value changes from derivative financial instruments | 9,732,511.92 |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2024 to December 31, 2024（Unless other wise specified, RMB for record in the statement)
| Item | Current Period | Last Period |
| Derivative financial liabilities | -124,130,668.06 | |
| Among them: Income from fair value changes generated by derivative financial instruments | -124,130,668.06 | |
| Other non-current financial assets measured at fair value | 4,172,388.96 | 16,256,733.17 |
| Including : Amount of change in the fair value of the current profit and loss of the non-trading equity instruments | 4,172,388.96 | 16,256,733.17 |
| Total | -87,184,652.30 | 7,293,761.73 |
10. Credit impairment loss
| Item | Current Year | Last Year |
| Account receivable bad debt loss | 14,993,351.76 | -81,390,317.77 |
| Other account receivable bad debt loss | -91,570.95 | -78,256.93 |
| Total | 14,901,780.81 | -81,468,574.70 |
11. Assets impairment loss
| Item | Current Period | Last Period |
| Loss on inventory valuation | -96,363,207.80 | -36,533,558.64 |
| Impairment loss on intangible assets | -15,750,561.72 | -18,200,119.46 |
| Long-term equity investment impairment loss | -3,097,405.00 | |
| Development expense impairment loss | -1,530,365.17 | |
| Impairment loss on contractual assets | 94,761.06 | -500,429.38 |
| Other impairment losses of non-current assets | 63,720.00 | |
| Total | -116,583,058.63 | -55,234,107.48 |
12. Income from assets disposal
| Item | Current Period | Last Period |
| Income from non-current assets disposal | 160,661.55 | 1,880,089.33 |
| Including: income classify to assets ready for sale | 160,661.55 | 1,880,089.33 |
| Income from the disposal of the right to use the assets | 427,769.09 | 73,793.22 |
| Income from fixed assets disposal | -267,107.54 | 1,806,296.11 |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2024 to December 31, 2024（Unless other wise specified, RMB for record in the statement)
| Item | Current Period | Last Period |
| Income from non-current assets disposal | 160,661.55 | 1,880,089.33 |
| Including: income classify to assets ready for sale | 160,661.55 | 1,880,089.33 |
| Total | 160,661.55 | 1,880,089.33 |
13.Non-operation revenue
| Item | Current Period | Last Period | Amount reckoned into non-recurring gains/losses in Current Period |
| Income of penalty | 2,820,099.56 | 6,392,175.77 | 2,820,099.56 |
| other | 8,118,363.30 | 8,680,043.24 | 8,118,363.30 |
| Total | 10,938,462.86 | 15,072,219.01 | 10,938,462.86 |
14. Non-operating expenditure
| Item | Current Period | Last Period | Amount reckoned into non-recurring gains/losses in Current Period |
| Non-current asset retirement losses | 4,336,902.78 | 5,218,522.66 | 4,336,902.78 |
| Public welfare donation expenditure | 934,781.74 | 1,106,759.24 | 934,781.74 |
| Other | 6,657,178.71 | 2,042,193.27 | 6,657,178.71 |
| Total | 11,928,863.23 | 8,367,475.17 | 11,928,863.23 |
15. Income tax expenses
| Item | Current Year | Last Year |
| Current income tax | 81,540,342.99 | 32,617,426.64 |
| Deferred income Tax | 7,369,918.08 | 3,804,926.17 |
| Total | 88,910,261.07 | 36,422,352.81 |
16. Other comprehensive income
Found more in 47. Other comprehensive income in V(III) Items of cash flow statement
(1) Cash related to business activities
1) Cash received from other activities relating to operation
| Item | Current Year | Last Year |
| Government subsidy and rewards | 86,323,429.01 | 54,092,201.06 |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2024 to December 31, 2024（Unless other wise specified, RMB for record in the statement)
| Item | Current Year | Last Year |
| Cash deposit, deposit | 21,680,522.40 | 37,414,693.10 |
| Other | 25,491,569.43 | 19,750,100.33 |
| Total | 133,495,520.84 | 111,256,994.49 |
(2) Cash paid for other activities relating to operation
| Item | Current Year | Last Year |
| Operating out of cash expenses | 1,087,578,839.60 | 699,585,416.82 |
| Petty cash, deposit, Cash deposit | 46,413,594.48 | 65,400,113.95 |
| Total | 1,133,992,434.08 | 764,985,530.77 |
(2) Cash related to Investment activities
1) Important cash received related to investment activities
| Item | Current Period | Last Period |
| Structural deposits | 13,070,000,000.00 | 1,120,000,000.00 |
| Large deposit certificate | 220,000,000.00 | 170,000,000.00 |
| Total | 13,290,000,000.00 | 1,290,000,000.00 |
(2) Important cash payable related to investment activities
| Item | Current Period | Last Period |
| Structural deposits | 13,070,000,000.00 | 1,120,000,000.00 |
| Large deposit certificate | 872,862,222.20 | 360,000,000.00 |
| Total | 13,942,862,222.20 | 1,480,000,000.00 |
(3) Cash received from other activities relating to investment
| Item | Current Period | Last Period |
| Interest income arising from bank savings | 177,500,877.49 | 190,340,378.30 |
| Capital collection | 17,129,427.73 | 119,615,832.70 |
| Cash deposit | 1,706,624.53 | 1,194,923.87 |
| Income of forward exchange settlement | 65,593.68 | |
| Total | 196,402,523.43 | 311,151,134.87 |
(4) Cash paid for other activities relating to investment
| Item | Current Period | Last Period |
| Loses of forward exchange settlement | 21,299,366.89 | 116,011,395.99 |
| Bid bond refund | 500,000.00 |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2024 to December 31, 2024（Unless other wise specified, RMB for record in the statement)
| Item | Current Period | Last Period |
| Total | 21,299,366.89 | 116,511,395.99 |
( 3) Cash related to financing activities
1) Cash received from other activities relating to financing
| Item | Current Year | Last Year |
| Recover restricted funds | 16,831,731.38 | 356,794,918.15 |
| Meiling series (internal) bill discounting fundraising | 229,647,515.53 | 19,497,591.35 |
| Total | 246,479,246.91 | 376,292,509.50 |
2) Cash paid for other activities relating to financing
| Item | Current Year | Last Year |
| Turn into limited funds | 86,968,683.53 | 71,212,010.57 |
| Distribusigned to shareholders at the time of cancellation | 14,470,087.35 | 8,257,294.29 |
| Lease liability principal and interest | 8,361,366.02 | 9,788,959.46 |
| Dividend service charge | 230,889.27 | 65,600.34 |
| Other | 250,000.00 | |
| Total | 110,281,026.17 | 89,323,864.66 |
4. Supplementary of the consolidated cash flow statement
| Supplementary | Current Period | Last Period |
| 1. Net profit is adjusted to cash flow of operation activities: | ||
| Net profit | 724,667,502.87 | 767,993,332.30 |
| Add: provision for depreciation of assets | 116,583,058.63 | 55,234,107.48 |
| Credit impairment provision | -14,901,780.81 | 81,468,574.70 |
| Depreciation of fixed assets, consumption of oil gas assets and depreciation of productive biological assets | 264,209,453.01 | 248,036,737.69 |
| Amortization of intangible assets | 150,120,886.39 | 149,895,749.73 |
| Amortization of long-term retained expense | 16,158,992.30 | 9,199,217.86 |
| Loss from disposal of fixed assets, intangible assets and other long term assets (gain is listed with “-”) | -160,661.55 | -1,880,089.33 |
| Loss from discarding fixed assets as useless (gain is listed with “-”) | 4,103,076.53 | 5,081,404.15 |
| Loss from change of fair value (gain is listed with “-”) | 87,184,652.30 | -7,293,761.73 |
| Financial expense (gain is listed with “-”) | -157,205,062.67 | -105,597,302.07 |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2024 to December 31, 2024（Unless other wise specified, RMB for record in the statement)
| Supplementary | Current Period | Last Period |
| Investment loss (gain is listed with “-”) | -35,709,856.70 | -8,966,008.84 |
| Decrease of deferred income tax assets (increase is listed with “-”) | -17,115,276.70 | 1,727,030.73 |
| Increase of deferred income tax liabilities (decrease is listed with “-”) | 24,485,194.78 | 2,077,895.44 |
| Decrease of inventories (increase is listed with “-”) | -1,588,581,308.69 | -296,195,160.51 |
| Decrease of operational accounts receivable (increase is listed with “-”) | 186,215,213.84 | -758,811,422.19 |
| Increase of operational accounts receivable (decrease is listed with “-”) | 4,210,203,134.43 | 1,930,939,125.06 |
| Other | ||
| Net cash flow arising from operation activities | 3,970,257,217.96 | 2,072,909,430.47 |
| 2. Major investment and financing activities that do not involve cash receipts: | ||
| Conversion of debt into capital | ||
| Switching Company bonds due within one year | ||
| New right to use assets | ||
| 3. Net change in cash and cash equivalents: | ||
| Balance at period-end of cash | 9,976,098,734.11 | 8,391,177,936.62 |
| Less: Opening balance of cash | 8,391,177,936.62 | 6,120,396,888.04 |
| Add: Balance at period-end of cash equivalents | ||
| Less: Opening balance of cash equivalents | ||
| Net increase in cash and cash equivalents | 1,584,920,797.49 | 2,270,781,048.58 |
5. Cash and cash equivalent
(1) Detail
| Item | Current Period | Last Period |
| 1) Cash | 9,976,098,734.11 | 8,391,177,936.62 |
| Including: cash in stock | 19,623.13 | 15,600.68 |
| Bank deposits available for payment at any time. | 9,974,662,103.93 | 8,387,434,041.46 |
| Other monetary fund available for payment at any time | 1,417,007.05 | 3,728,294.48 |
| 2) Cash equivalents |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2024 to December 31, 2024（Unless other wise specified, RMB for record in the statement)
| Item | Current Period | Last Period |
| Including: bond investment due within 3 months | ||
| Balance of cash and cash equivalents at period-end | 9,976,098,734.11 | 8,391,177,936.62 |
(2) Monetary funds that are not cash and cash equivalents
| Item | This year's amount | Last year's amount | Reasons other than cash and cash equivalents |
| Judicial freezing of funds due to contract disputes | 504,942,490.94 | 412,827,872.71 | Limited use |
| Guarantee and acceptance bill deposit | 5,738,159.13 | 27,715,825.21 | Limited use |
| Interest receivable | 5,671,366.43 | 10,901,601.18 | Interest accrual |
| Total | 516,352,016.50 | 451,445,299.10 |
6. Changes in liabilities arising from fund-raising activities
| Item | Amount at year-begin | Increase this year | Decrease in the year | Amount at year end | ||
| Cash changes | Non cash changes | Cash changes | Non cash changes | |||
| Short-term | 1,134,102,419.03 | 2,346,263,587.01 | 8,871,602.37 | 2,722,489,371.00 | 951.40 | 766,747,286.01 |
| Long-term loans | 148,172,155.56 | 10,000,000.00 | 135,116.92 | 148,462,612.48 | 9,844,660.00 | |
| Lease liabilities | 35,460,065.89 | 115,123,187.68 | 8,361,366.02 | 21,104,976.96 | 121,116,910.59 | |
| Dividend payable | 5,384,407.44 | 347,853,265.05 | 347,231,682.77 | 6,005,989.72 | ||
| Subtotal | 1,323,119,047.92 | 2,356,263,587.01 | 471,983,172.02 | 3,226,545,032.27 | 21,105,928.36 | 903,714,846.32 |
7. Statement of cash flow in net amount
| Item | Relevant facts | Basis for adopting net presentation | Financial impact |
| Forward foreign exchange delivery | As a legal entity, the Company reports the gains or losses of foreign exchange contract delivery to the receipt of other cash related to investment activities and the payment of other cash related to investment activities | The reported information is more intuitive | No |
| Restricted funds | As a legal entity, the Company reports the current year's change of restricted funds to the receipt of other cash related to fundraising activities and the payment of other cash related to fundraising activities | Rolling reflection | No |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2024 to December 31, 2024（Unless other wise specified, RMB for record in the statement)
| Item | Relevant facts | Basis for adopting net presentation | Financial impact |
| Meiling (internal) notes discount fundraising amount | As a legal entity, the Company reclassifies the current year's change in Meiling (internal) notes discount undue, from cash received from sales of goods, service provision/cash paid from purchase of goods, and receipt of services to other received cash related to fund-raising activities/other paid cash related to fundraising activities | Rolling reflection | No |
8. It does not involve the current cash receipts and payments, but affects the financial situation ofthe enterprise or may affect the cash flow of the enterprise in the future
N/A(IV)Other
1. Foreign currency
(1) Detail
| Item | Ending foreign currency balance | Exchange rate | Ending RMB converted balance |
| Monetary fund | 417,983,789.41 | ||
| Including: USD | 30,492,303.47 | 7.1884 | 219,190,874.26 |
| Euro | 16,271,655.23 | 7.5257 | 122,455,595.76 |
| AUD | 5,436,976.88 | 4.5070 | 24,504,454.80 |
| PKR | 1,100,078,112.61 | 0.0258 | 28,409,517.26 |
| IDR | 40,026,618,584.00 | 0.000451 | 18,052,004.98 |
| Won | 983,088,756.00 | 0.004938 | 4,854,492.28 |
| PHP | 4,158,018.92 | 0.1243 | 516,850.07 |
| Account receivable | 1,304,756,472.57 | ||
| Including: USD | 112,606,719.14 | 7.1884 | 809,462,139.87 |
| Euro | 17,259,951.25 | 7.5257 | 129,893,215.12 |
| AUD | 21,965,383.89 | 4.5070 | 98,997,985.19 |
| HKD | 125,183,875.84 | 0.9260 | 115,920,269.03 |
| PKR | 392,500,262.03 | 0.0258 | 10,136,319.27 |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2024 to December 31, 2024（Unless other wise specified, RMB for record in the statement)
| Item | Ending foreign currency balance | Exchange rate | Ending RMB converted balance |
| IDR | 221,379,247,642.96 | 0.000451 | 99,842,040.69 |
| Won | 3,481,016,998.00 | 0.004938 | 17,189,261.94 |
| PHP | 187,569,318.78 | 0.1243 | 23,315,241.46 |
| Other account receivable | 1,806,114.89 | ||
| Including: USD | 200,000.00 | 7.1884 | 1,437,680.00 |
| PKR | 4,890,883.07 | 0.0258 | 126,307.06 |
| IDR | 255,496,000.00 | 0.000451 | 115,228.70 |
| PHP | 1,020,893.70 | 0.1243 | 126,899.13 |
| Account payable | 79,388,986.73 | ||
| Including: USD | 7,558.56 | 7.1884 | 54,333.95 |
| PKR | 742,849,280.85 | 0.0258 | 19,184,082.68 |
| IDR | 96,728,874,373.00 | 0.000451 | 43,624,722.34 |
| PHP | 132,949,170.22 | 0.1243 | 16,525,847.76 |
(2) Description of overseas business entities
| Name of overseas company | Main place of business | Recording currency | Whether the recording currency changes | Reason of change |
| CHMeilingInternational(Philippines)Inc. | Philippines | Philippine peso | No | |
| ChanghongRubaTradingCompany（Private）Limited | Lahore, Pakistan | PKR | No | |
| CHANGHONGMEILINGELECTRICINDONESIA,PT | Indonesia | IDR | No |
2. Lease
（1）The Company as lessee
1) Please refer to Note V (I) 18 to the financial statements for details about the right-to-useassets.
2) The amount of lease expenses included in the current profits and losses is as follows:
| Item | Current amount | Amount of the same period last year |
| Interest expense of lease liabilities | 3,480,179.14 | 866,829.13 |
| Short-term lease expense | 8,899,819.70 | 10,020,995.84 |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2024 to December 31, 2024（Unless other wise specified, RMB for record in the statement)
The Company's accounting policies for short-term lease and low-value asset lease are detailedin Note III (XXXIII) to the financial statements.
3) The total cash outflow related to lease is RMB 16,533,558.16.
4) For details of the maturity analysis of lease liabilities and the corresponding liquidity riskmanagement, please refer to the description of Note IX (II) to the financial statements.
（2）The Company as lessor
1）Operating lease of the Company as lessor
| Item | Current amount | Amount of the same period last year |
| Lease income | 42,904,760.57 | 49,331,981.60 |
For details of operating leased-out fixed assets, please refer to Note V (I) 17 of the financialstatements.
2) Financial lease
The Company has no financial lease as a lessor
3) The Company does not recognize the profit and loss of financial lease sales as amanufacturer or distributor.
3. Supplier financing arrangement
(1) Terms and conditions of supplier financing arrangements
| Types of supplier financing arrangements | Terms and conditions |
| Financing business | The supplier handles the financing business with Yuanxin Financial Leasing Co., Ltd. according to the bills issued by the Company, discounts the relevant bills and shortens the payment period |
(2) Liabilities related to supplier financing arrangements
1) Book value of related liabilities
| Item | Ending amount | Opening amount |
| Accounts payable | 185,567,424.38 | 133,021,074.80 |
| In which: the supplier has received the payment | 185,567,424.38 | 133,021,074.80 |
| Subtotal | 185,567,424.38 | 133,021,074.80 |
2) Maturity date range for related liabilities
| Item | Maturity date range of final payment |
| Liabilities belonging to financing arrangements | 1-6 months after the invoice is issued |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2024 to December 31, 2024（Unless other wise specified, RMB for record in the statement)
VI.R&D expenditure(I) R&D expenditure
| Item | Amount incurred this year | Amount incurred last year |
| Salary and social insurance etc. | 290,438,820.29 | 333,204,514.37 |
| Amortized intangible assets | 128,863,813.35 | 128,124,567.42 |
| Cost of mould | 138,699,736.02 | 93,918,099.78 |
| Trial fee of R&D | 90,611,055.62 | 83,379,401.74 |
| Technical development cost | 70,128,627.53 | 26,648,055.81 |
| Depreciation | 27,268,033.15 | 20,217,498.97 |
| Inspection and authentication fee | 28,187,701.47 | 19,974,458.24 |
| Domestic travel expenses | 4,367,990.30 | 3,760,534.31 |
| Other | 66,098,532.36 | 36,123,499.16 |
| Total | 844,664,310.09 | 745,350,629.80 |
| Including: expensed R&D expenditure | 637,242,233.83 | 597,529,355.84 |
| Capitalized R&D expenditure | 207,422,076.26 | 147,821,273.96 |
(II) Development expenditure
1. Changes of opening and ending balance of development expenditure
| Item | Opening balance | Increase in this period | Decrease in this period | Ending balance | |||
| Internal development expenditure | Others | Recognized as intangible assets | Transferred to current profits and losses | Others | |||
| Development of air conditioning technology | 38,042,546.27 | 156,424,332.47 | 158,680,478.89 | 35,786,399.85 | |||
| Development of ice washing technology | 59,134,989.07 | 50,997,743.79 | 69,677,318.55 | 1,531,119.42 | 38,924,294.89 | ||
| Total | 97,177,535.34 | 207,422,076.26 | 228,357,797.44 | 1,531,119.42 | 74,710,694.74 | ||
2. Impairment of development expenditure
Changes in impairment provision for development expenditure
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2024 to December 31, 2024（Unless other wise specified, RMB for record in the statement)
| Item | Opening amount | Increase in this period | Decrease in this period | Ending amount | ||
| Accrual | Others | Disposal or scrapping | Others | |||
| Development of ice washing technology | 1,530,365.17 | 1,530,365.17 | ||||
| Subtotal | 1,530,365.17 | 1,530,365.17 | ||||
VII. Changes of consolidation rage
1. Enterprise combined are not under the same control
1.) Business merger under the same control in this period
| Name of merged party | Proportion of rights and interests obtained in business merger | Basis for forming business merger under the same control | Merger date | Basis for determining the merger date |
| Hefei Changhong Industry Co., Ltd. | 100.00% | Under the control of Sichuan Changhong Electric Co.,Ltd. | 2024-11-20 | Equity change |
（Continued）
| Name of merged party | Income of the merged party from the beginning of the current merger period to the merger date | Net profit of the merged party from the beginning of the current merger period to the merger date | Income of the merged party during the comparison period | Net profit of the merged party during the comparison period |
| Hefei Changhong Industry Co., Ltd. | 23,789,354.60 | 1,918,902.01 | 130,078,151.73 | -4,840,697.26 |
2. Merger cost
| Merger cost | 375,033,242.38 |
| Cash | 375,033,242.38 |
3. Book value of the assets and liabilities of the merged party on the merger date
(1) Detail
| Item | Hefei Changhong Industry Co., Ltd. | |
| Merger date | End of last period | |
| Assets | 245,444,834.36 | 264,664,633.71 |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2024 to December 31, 2024（Unless other wise specified, RMB for record in the statement)
| Item | Hefei Changhong Industry Co., Ltd. | |
| Merger date | End of last period | |
| Monetary fund | 30,542,227.43 | 1,937,710.01 |
| Account receivable | 26,842,753.96 | 46,604,860.24 |
| Financing receivable | 254,932.58 | |
| Advance payment | 4,512.15 | 60,355.39 |
| Other receivable | 1,359,651.17 | 17,206,067.73 |
| Contract assets | 50,000.00 | 50,000.00 |
| Fixed assets | 144,106,028.05 | 154,864,143.52 |
| Intangible assets | 42,539,661.60 | 43,686,564.24 |
| Liabilities | 8,527,632.82 | 29,666,334.18 |
| Not payable | 6,285,132.71 | |
| Account payable | 3,802,278.48 | 18,220,935.84 |
| Advance received | 420,478.56 | |
| Contract liabilities | 3,439.36 | 34,882.24 |
| Salary payable to staff and worker | 709,255.59 | 973,678.42 |
| Taxes payable | 809,721.27 | 1,303,643.74 |
| Other payable | 2,782,021.01 | 2,763,641.11 |
| Other current liabilities | 438.55 | 4,526.12 |
| Long-term employee remuneration payable | 79,894.00 | |
| Net assets | 236,917,201.54 | 234,998,299.53 |
| Less：Minority equity | ||
| Net assets obtained | 236,917,201.54 | 234,998,299.53 |
(2) Changes in the scope of merger due to other reasons
1. Increase in the scope of merger
| Name of company | Mode of equity acquisition | Time of equity acquisition | Amount of capital contribution (RMB '0,000) | Ratio of contribution (%) |
| Sichuan Changhong Intelligent Air Conditioning Technology Co., Ltd. | New | March 26, 2024 | 10,000.00 | 100.00 |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2024 to December 31, 2024（Unless other wise specified, RMB for record in the statement)
VIII. Equity in other entity
(I) Composition of enterprise groups
1. The Company included 24 subsidiaries including Zhongke Meiling Cryogenics TechnologyCo., Ltd., Sichuan Changhong Air Conditioning Co., Ltd. and Zhongshan Changhong ElectricCo.,Ltd. into the scope of consolidated financial statements.
2. Basic information of subsidiaries
| Name of subsidiary | Registered capital (RMB '0,000) | Main place of business and place of registration | Business nature | Shareholding ratio (%) | Acquisition method | |
| Direct | Indirect | |||||
| Jiangxi Meiling Electric Appliance Co., Ltd. | 5,000.00 | Jingdezhen, Jiangxi | Manufacture and sale | 98.75 | 1.25 | Funded establishment |
| Mianyang Meiling Refrigeration Co., Ltd. | 10,000.00 | Mianyang | Manufacturing and sales | 95.00 | 5.00 | Funded establishment |
| Zhongke Meiling Cryogenic Technology Co., Ltd | 9,673.09 | Hefei | Manufacturing and sales | 47.4512 | Funded establishment | |
| Anhui Tuoxing Technology Co., Ltd. | 1,000.00 | Hefei | Technology R & D | 47.4512 | Funded establishment | |
| Anhui Ling'an Medical Equipment Co., Lt | 5,000.00 | Lu'an | Manufacturing and sales | 47.4512 | Funded establishment | |
| Sichuan Changhong Air-conditioner Co., Ltd | 85,000.00 | Mianyang | Manufacturing and sales | 100.00 | Enterprise combined under the same control | |
| Ground Energy Heat Pump Tech. Co., Ltd. | 5,000.00 | Mianyang | Manufacturing and sales | 85.00 | Funded establishment | |
| Ground Energy Heat Pump Tech. (Zhongshan) Co., Ltd. | 4,500.00 | Zhongshan | Manufacturing and sales | 85.00 | Funded establishment | |
| Sichuan Changhongi Intelligent Technology Co., Ltd. | 10,000.00 | Mianyang | Manufacturing and sales | 100.00 | Funded establishment | |
| Zhongshan Changhong Electric Co., Ltd | 33,400.00 | Zhongshan | Manufacturing and sales | 90.00 | 10.00 | Enterprise combined |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2024 to December 31, 2024（Unless other wise specified, RMB for record in the statement)
| Name of subsidiary | Registered capital (RMB '0,000) | Main place of business and place of registration | Business nature | Shareholding ratio (%) | Acquisition method | |
| Direct | Indirect | |||||
| under the same control | ||||||
| Changhong Ruba Trading Company (Private)Limited | 8,308.98 | Pakistan | Sales | 60.00 | Funded establishment | |
| Changhong Meiling Electric Indonesia,PT | 4,027.20 | Jakata | Sales | 100.00 | Funded establishment | |
| Guangzhou Changhong Trading Co., Ltd. | 100.00 | Zhuangzhou | Sales | 100.00 | Funded establishment | |
| Changhong Meiling Ridian Technology Co., Ltd | 8,300.00 | Zhongshan | Manufacturing and sales | 99.0361 | Enterprise combined under the same control | |
| Hebei Hongmao Daily Appliance Technology Co., Ltd | 500.00 | Handan | Manufacturing and sales | 99.0361 | Funded establishment | |
| Hefei Meiling Group Holdings Limited | 8,000.00 | Hefei | Sales | 100.00 | Funded establishment | |
| Hefei Meiling Nonferrous Metal Products Co., Ltd | 2,428.68 | Hefei | Manufacturing and sales | 100.00 | Enterprise combined not under the same control | |
| Meiling Equator Appliance（Hefei）Co., Ltd. | 2,479.31 | Hefei | Manufacturing and sales | 100.00 | Enterprise combined not under the same control | |
| Meiling Equator Appliance Co., Ltd. | 1,200.00 | Hefei | Manufacturing and sales | 100.00 | Enterprise combined not under the same control | |
| Hefei Meiling Wulian Technology Co., Ltd. | 1,000.00 | Hefei | Software Developme | 100.00 | Funded establishm | |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2024 to December 31, 2024（Unless other wise specified, RMB for record in the statement)
| Name of subsidiary | Registered capital (RMB '0,000) | Main place of business and place of registration | Business nature | Shareholding ratio (%) | Acquisition method | |
| Direct | Indirect | |||||
| nt | ent | |||||
| CH-Meiling International (Philippines) Inc. | 688.91 | Philippine | Sales | 100.00 | Funded establishment | |
| Hefei Changhong Meiling Life Appliances Co., Ltd. | 5,000.00 | Hefei | Sale | 70.00 | Funded establishment | |
| Sichuan Hngmei Intelligent Technology Co., Ltd | 500.00 | Mianyang | Software Development | 100.00 | Funded establishment | |
| Hefei Changhong Industrial Co., ltd. | 10,000.00 | Hefei | Manufacturing and sales | 99.00 | 1.00 | Enterprise combined under the same control |
3. Other note
(1) Basis for holding half or less voting rights but still controlling the investee, and holdingmore than half voting rights but not controlling the investeeThe Company holds 47.4512% equity of Zhongke Meiling and is its largest shareholder. Inaddition to independent directors, the Board of Directors of Zhongke Meiling comprises a total ofthree members, of which Chairman Wu Dinggang just serves as the chairman of the controllingshareholder Changhong Meiling, and Director Zhong Ming serves as the director and member ofChanghong Meiling, which controls the daily operation of Zhongke Meiling.
(2) Major non-wholly-owned subsidiary
1. Detail
| Subsidiary | Shareholding ratio of minority | Gains/losses attributable to minority in Current Period | Dividend distributed to minority announced in Current Period | Balance of minority’s interest at period-end |
| Zhongke Meiling | ||||
| Ground Energy | 15.00% | 1,152,690.17 | 11,138,843.47 | |
| Ridian Technology | 0.9639% | -176,968.07 | 1,187,703.07 | |
| Meiling Life Appliances | 30.00% | 11,824,916.21 | 53,762,971.03 |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2024 to December 31, 2024（Unless other wise specified, RMB for record in the statement)
2. Financial information for major non-wholly-owned subsidiary
(1) Asset and Liabilities
| Subsidiary | Ending balance | |||||
| Current assets | Non-current assets | Total assets | Current liability | Non-current liability | Total liabilities | |
| Zhongke Meiling | 616,938,129.16 | 128,338,295.37 | 745,276,424.53 | 125,597,564.66 | 7,937,753.69 | 133,535,318.35 |
| Ground Energy | 659,779,005.79 | 119,097,321.45 | 778,876,327.24 | 634,669,777.13 | 69,947,593.70 | 704,617,370.83 |
| Ridian Technology | 203,569,313.35 | 35,669,577.14 | 239,238,890.49 | 114,766,806.02 | 946,297.67 | 115,713,103.69 |
| Meiling Life Appliances | 626,279,605.77 | 53,468,923.29 | 679,748,529.06 | 497,055,436.73 | 3,483,188.91 | 500,538,625.64 |
（Continued）
| Subsidiary | Opening balance | |||||
| Current assets | Non-current assets | Total assets | Current liability | Non-current liability | Total liabilities | |
| Zhongke Meiling | 590,872,333.93 | 143,608,411.32 | 734,480,745.25 | 120,874,302.44 | 12,086,470.45 | 132,960,772.89 |
| Ground Energy | 256,060,078.76 | 27,234,236.22 | 283,294,314.98 | 216,616,587.41 | 2,400.97 | 216,618,988.38 |
| Ridian Technology | 226,657,040.82 | 40,283,953.89 | 266,940,994.71 | 125,655,866.42 | 292,501.04 | 125,948,367.46 |
| Meiling Life Appliances | 621,873,116.90 | 613,240.68 | 622,486,357.58 | 481,523,383.11 | 1,169,458.41 | 482,692,841.52 |
(2) Profit and loss and cash flow situation
| Subsidiary | Current Period | |||
| Operation income | Net profit | Total comprehensive income | Cash flow from operation activity | |
| Zhongke Meiling | 295,773,281.94 | 18,087,029.57 | 18,087,029.57 | 25,513,232.80 |
| Ground Energy | 1,576,880,674.39 | 7,684,601.11 | 7,684,601.11 | 50,051,754.93 |
| Ridian Technology | 140,493,379.04 | -18,360,438.04 | -18,360,438.04 | -154,927.16 |
| Meiling Life Appliances | 1,335,609,757.73 | 39,416,387.36 | 39,416,387.36 | 40,668,906.07 |
(Continued)
| Subsidiary | Last Period | |||
| Operation income | Net profit | Total comprehensive income | Cash flow from operation activity | |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2024 to December 31, 2024（Unless other wise specified, RMB for record in the statement)
| Subsidiary | Last Period | |||
| Operation income | Net profit | Total comprehensive income | Cash flow from operation activity | |
| Zhongke Meiling | 302,800,718.15 | 16,126,507.82 | 16,126,507.82 | -9,706,149.56 |
| Ground Energy | 564,892,721.56 | 15,842,650.38 | 15,842,650.38 | 56,039,000.87 |
| Ridian Technology | 238,871,773.09 | 2,116,223.21 | 2,116,223.21 | 14,725,141.77 |
| Meiling Life Appliances | 1,660,852,475.77 | 57,607,898.93 | 57,607,898.93 | 77,583,337.61 |
3. Equity in joint venture or associate enterprise
(1) Major joint venture or associate enterprise
| Joint venture or associate enterprise | Main office place | Register place | Business nature | Shareholding ratio（%) | Accounting treatment for investment of joint venture or associate enterprise | |
| Directly | Indirectly | |||||
| Sichuan Zhiyijia Network Technology Co., Ltd. | Mianyang | Mianyang | Sales | 50.00 | Equity | |
2. Financial information for major Joint venture
| Item | Sichuan Zhiyijia Network Technology Co., Ltd. | |
| Balance at year-end/Current Year | Balance at year-begin /Last Year | |
| Current assets | 2,007,299,998.18 | 2,466,521,759.37 |
| Non-current assets | 20,768,579.44 | 18,519,147.09 |
| Total assets | 2,028,068,577.62 | 2,485,040,906.46 |
| Current liability | 1,902,969,573.01 | 2,343,467,271.81 |
| Non-current liability | 6,391,421.04 | 5,509,063.82 |
| Total liabilities | 1,909,360,994.05 | 2,348,976,335.63 |
| Minority's interest | ||
| Equity attributable to shareholder of parent company | 118,707,583.57 | 136,064,570.83 |
| Share of net assets measured by shareholding | 59,353,791.79 | 68,032,285.42 |
| Adjustment | 821,877.28 | 821,877.28 |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2024 to December 31, 2024（Unless other wise specified, RMB for record in the statement)
| Item | Sichuan Zhiyijia Network Technology Co., Ltd. | |
| Balance at year-end/Current Year | Balance at year-begin /Last Year | |
| --Goodwill | 821,877.28 | 821,877.28 |
| Book value of the equity investment for associate enterprise | 60,175,669.07 | 68,854,162.70 |
| Fair value of equity investment for the affiliates with consideration publicly | ||
| Operation income | 481,211,169.61 | 509,222,643.15 |
| Net profit | 16,537,997.96 | 37,428,167.10 |
| Net profit from the termination of the business operations | ||
| Other comprehensive income | ||
| Total comprehensive income | 16,537,997.96 | 37,428,167.10 |
| Dividend received from associate enterprise in Current Year | 5,097,740.91 | 1,629,022.64 |
3. Financial summary for non-important Joint venture and associate enterprise
| Item | Balance at year-end/Current Year | Balance at year-begin /Last Year |
| Associated companies： | ||
| Total book value of investment | 21,335,477.75 | 43,891,649.05 |
| Total amount measured by shareholding ratio | ||
| --Net profit | -3,204,885.32 | -28,901,875.68 |
| --Other comprehensive income | -733,111.33 | 7,663,003.10 |
| -- Total comprehensive income | -3,937,996.65 | -21,238,872.58 |
4. Excess loss occurred in joint venture or affiliates
Hefei Meiling Solar Energy Technology Co., Ltd andChanghongRubaElectricCompany(Private)Ltd have losses above the quota.IX.Government subsidies
(I) New government subsidies in this period
| Item | New subsidy amount in this period |
| Government subsidies related to assets | 23,346,500.00 |
| Of which: included in deferred income | 23,346,500.00 |
| Government subsidies related to income | 72,019,415.65 |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2024 to December 31, 2024（Unless other wise specified, RMB for record in the statement)
| Item | New subsidy amount in this period |
| In which: included in other income | 72,019,415.65 |
| Total | 95,365,915.65 |
(2) Liabilities involving government subsidies
| Items presented in financial statements | Opening amount | Increase in this period Subsidy amount | Amount included in other income in this period | Amount included in non-operating income in this period |
| Deferred income | 132,977,494.33 | 23,346,500.00 | 30,888,816.43 | |
| Subtotal | 132,977,494.33 | 23,346,500.00 | 30,888,816.43 |
Continued
| Items presented in financial statements | Amount of cost offset in this period | Amount of assets written off in this period | Other changes | Ending amount | Assets/income-related |
| Deferred income | 125,435,177.90 | Asset-related | |||
| Subtotal | 125,435,177.90 |
(3) Amount of government subsidies included in the current profits and losses
| Item | Current amount | Amount of the same period last year |
| Other income | 103,253,170.72 | 89,605,122.53 |
| Financial expenses | 42,100.00 | |
| Total | 103,253,170.72 | 89,647,222.53 |
(4) Government subsidies returned in this period
| Item | Returned amount | Return reason |
| Return of incentive funds for promoting new industrialization policy in the Hefei Economic Zone in 2019 | 30,000.00 | Issue error, notified to return |
| Return of partial prepaid subsidy funds for the new apprenticeship training of enterprises in 2021 | 187,500.00 | Following personnel dismissal resulting in a decrease in subsidies |
| Total | 217,500.00 |
X. Relevant risks related with financial instrument
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2024 to December 31, 2024（Unless other wise specified, RMB for record in the statement)
The main financial instruments of our company include loans, accounts receivable, accounts payable,trading financial assets, derivative financial assets, trading financial liabilities, derivative financialliabilities, etc Trading financial liability, the details of which are set out in Note V.Risks related tothese financial instruments include exchange risks and interest rate risks. The management of theCompany controls and monitors the risk exposures to ensure the above risks are under control.
1. Various risk management objectives and policies
The Company's goal in risk management is to strike a proper balance between risks and benefits, reducethe negative impact of risks on the Company's operating performance to the lowest level, and maximizethe interests of shareholders and other equity investors. Based on this risk management goal, the basicstrategy of the Company's risk management is to identify and analyze all kinds of risks faced by theCompany, establish an appropriate risk tolerance bottom line and conduct risk management, and timelyand reliably supervise all kinds of risks to control the risks within a limited range.
(1) Market risk
1) Exchange rate risk
The Company pays close attention to the impact of exchange rate changes on the Company. TheCompany attaches great importance to the study of exchange rate risk management policies andstrategies. In order to avoid the exchange rate risk of foreign currency payment and foreign currencycollection and settlement income, the Company has signed several forward foreign exchange contractswith banks. The fair value of forward foreign exchange contracts recognized as derivative financialinstruments on December 31,2024 is RMB -84,349,606.49. Changes in the fair value of derivativefinancial instruments have been included in the profit and loss, and the relevant contents of "V. 9 Incomefrom changes in fair value" in this note. In the meantime, with the constant change in the share of theinternational market, if there are risks beyond the control of the Company, such as unilateral largechanges in the RMB exchange rate, the Company will reduce the risks by adjusting the sales orpurchasing strategies.
2) Interest rate risk
The Company's interest rate risk arises from bank loans and interest-bearing debts. Financial liabilitieswith floating interest rate expose the Company to cash flow interest rate risk, while financial liabilitieswith fixed interest rate expose the Company to fair value interest rate risk. The Company decides therelative proportion of fixed interest rate and floating interest rate contracts according to the marketenvironment at that time. On December 31,2024, the Company's interest-bearing debts were mainly thefixed-rate loan contracts denominated in RMB, with a total amount of RMB776,591,946.01; TheCompany's risk of changes in the fair value of financial instruments due to changes in interest rates is
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2024 to December 31, 2024（Unless other wise specified, RMB for record in the statement)
mainly related to fixed-rate bank loans. The Company's risk of cash flow changes of financialinstruments caused by interest rate changes is mainly related to floating interest rate bank loans. TheCompany pays close attention to the impact of this part of interest rate changes on the Company andattaches importance to the study of interest rate risk management policies and strategies.
(2) Credit risk
On December 31n,2024, the biggest credit risk exposure that may cause the financial loss of theCompany mainly comes from the loss of the Company's financial assets caused by the failure of the otherparty to the contract and the financial guarantee undertaken by the Company, including: the book amountof the financial assets recognized in the consolidated balance sheet; For financial instruments measuredat fair value, the book value reflects their risk exposure, but not the maximum risk exposure, and itsmaximum risk exposure will change with the change of fair value in the future. In order to reduce thecredit risk, the Company set up a special department to determine the credit line, conduct credit approval,and implement other monitoring procedures to ensure that necessary measures are taken to recoveroverdue creditor's rights. Meanwhile, the Company tries to reduce the impact of credit default ofcreditor's rights by purchasing credit insurance. In addition, the Company reviews the recovery of eachsingle receivable on each balance sheet date to ensure that sufficient bad debt provision is made forunrecoverable funds. Therefore, the management of the Company believes that the credit risk assumedby the Company has been greatly reduced. The Company's working capital is deposited in the financecompany, so the credit risk of working capital is low. The Company has adopted necessary policies toensure that all sales customers have good credit records. The total amount of the top five accountsreceivable is RMB 587,980,658.36, accounting for 31.76% of the accounts receivable at the end of theyear, which is dependent on major customers. Except for the top five accounts receivable, the Companyhas no other major credit risks.
(3) Liquidity risk
Liquidity risk is the risk that the Company cannot fulfill its financial obligations on the due date. TheCompany's method of managing liquidity risk is to ensure that there is enough financial liquidity to fulfillthe due debts through capital plan management, without causing unacceptable losses or damaging thereputation of the company. According to the requirements of the capital plan cycle, the Company makes acapital plan in advance to ensure that there is sufficient capital when the debt is due. The management ofthe Company monitors the use of bank loans and ensures compliance with the loan agreement. In themeantime, it conducts financing negotiations with financial institutions to maintain a certain credit lineand reduce liquidity risk.
Financial liabilities are classified by remaining maturity date
| Item | Ending amount |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2024 to December 31, 2024（Unless other wise specified, RMB for record in the statement)
| Book value | Undiscounted contract amount | Within 1 year | 1-3 years | More than 3 years | |
| Bank loan | 776,591,946.01 | 783,822,244.05 | 783,822,244.05 | ||
| Derivative financial liabilities | 156,359,680.92 | 156,359,680.92 | 156,359,680.92 | ||
| Notes payable | 7,934,125,435.65 | 7,934,125,435.65 | 7,934,125,435.65 | ||
| Accounts payable | 6,132,020,588.41 | 6,132,020,588.41 | 6,132,020,588.41 | ||
| other payables | 1,025,433,422.81 | 1,025,433,422.81 | 1,025,433,422.81 | ||
| Lease liabilities (including those due within one year) | 121,116,910.59 | 142,586,055.14 | 23,319,836.39 | 119,266,218.75 | |
| Subtotal | 16,145,647,984.39 | 16,174,347,426.98 | 16,055,081,208.23 | 119,266,218.75 |
2.Hedging
(1)The Company carries out hedging business and risk management
The Company mainly uses forward foreign exchange contracts to hedge the risk of exchangerate fluctuations. The Company designates the purchased forward foreign exchange contracts ashedging instruments, treats them in accordance with the hedge accounting method, and evaluatesthe hedged items of unconfirmed asset liability itemssuch as unrecognized fixed commitments atthe balance sheet date. The Company uses the ratio analysis method to evaluate the effectivenessof the hedge, and considers that it is highly effective, and the amount of hedge invalidityrecognized in the current period is not material
| Item | Corresponding risk management strategies and objectives | Qualitative and Quantitative information on hedged risk | The economic relationship between the hedged item and the related hedging instrument | Expected effective achievement of risk management objectives | The impact of the corresponding hedging activity on the risk exposure |
| Forward foreign exchange contracts | A foreign exchange risk prevention strategy with hedging as the core and risk prevention as the | The extent to which changes in the fair value of the hedging instrument can offset the | Forward foreign exchange contracts are hedging instruments that are locked based on the foreign exchange exposure generated | Foreign exchange hedging refers to the risk management activity of designating a | According to the hedge accounting standards, in order to ensure the effectiveness of hedging, the |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2024 to December 31, 2024（Unless other wise specified, RMB for record in the statement)
| Item | Corresponding risk management strategies and objectives | Qualitative and Quantitative information on hedged risk | The economic relationship between the hedged item and the related hedging instrument | Expected effective achievement of risk management objectives | The impact of the corresponding hedging activity on the risk exposure |
| purpose | change in the fair value or cash flows of the hedged item caused by the hedged risk | by the business: foreign exchange exposures include book assets and irrevocable orders. Irrevocable orders, which are defined commitments that have not yet been confirmed; Not yet recognized, which means that it has not been recognized in the balance sheet; A firm commitment refers to the exchange of a specific amount of resources at an agreed price and the signing of a legally binding agreement at a specific date or period in the future | financial instrument as a hedging instrument in order to manage the risk exposure arising from foreign exchange risk, so that the fair value or cash flow of the hedging instrument changes in anticipation of offsetting all or part of the change in the fair value or cash flow of the hedged item | premise of exposure hedging is that the currency is the same, the direction is opposite, and the expected date of receipt and payment of foreign exchange is similar |
(2) The Company conducts qualified hedging business and applies hedge accounting
| Item | Book value related to hedged items and hedging instruments | Hedging adjustment of accumulated fair value of hedged items included in the book value of hedged items | Hedging effectiveness and source of part with invalid hedging | Impact of hedging accounting on the Company's financial statements |
| Fair value hedging | ||||
| Hedging instruments- Derivative financial liabilities | 72,010,074.43 | Financial expenses - Exchange losses; Investment income; Change of income fair value | -110,397,578.69 | |
| Hedging | 156,359,680.92 | |||
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2024 to December 31, 2024（Unless other wise specified, RMB for record in the statement)
| Item | Book value related to hedged items and hedging instruments | Hedging adjustment of accumulated fair value of hedged items included in the book value of hedged items | Hedging effectiveness and source of part with invalid hedging | Impact of hedging accounting on the Company's financial statements |
| instruments- Derivative financial liabilities | ||||
| hedged items-assets | 5,076,274,396.73 | |||
| hedged items-liabilities |
3. Transfer of financial assets
(1)Classification of transfer modes
| Transfer mode | Nature of transferred financial assets | Amount of transferred financial assets | Derecognized or Not | Judgment basis of derecognition |
| Notes endorsement/ Notes discount | Receivable financing | 2,595,774,351.83 | Derecognize d | Almost all its risks and rewards have been transferred |
| Factoring | Accounts receivable | 7,039,895,390.42 | Derecognize d | Almost all its risks and rewards have been transferred |
| Subtotal | 9,635,669,742.25 |
(2)Financial assets that are derecognized due to transfer
| Item | Ways of financial assets transfer | Amount of financial assets derecognized | Gains or losses related to derecognition |
| Receivable financing | Notes endorsement/ Notes discount | 2,595,774,351.83 | -8,050,999.01 |
| Accounts receivable | Factoring | 7,039,895,390.42 | -38,646,658.21 |
| Subtotal | 9,635,669,742.25 | -46,697,657.22 |
XI. Fair value disclosure
1. Asset and liability measured by fair value at end of Current Period and fair value measurementlevel
| Item | Fair value at period-end | |||
| 1st level | 2nd level | 3rd level | Total | |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2024 to December 31, 2024（Unless other wise specified, RMB for record in the statement)
| Item | Fair value at period-end | |||
| 1st level | 2nd level | 3rd level | Total | |
| I. Continuous fair value measurement | ||||
| 1. Derivative financial assets | 72,010,074.43 | 72,010,074.43 | ||
| (1) Forward foreign exchange contracts | 72,010,074.43 | 72,010,074.43 | ||
| 2. Accounts receivable financing | 1,516,987,953.83 | 1,516,987,953.83 | ||
| 3. Other non current financial assets | 100,843,017.61 | 575,251,286.83 | 676,094,304.44 | |
| Total assets continuously measured at fair value | 72,010,074.43 | 100,843,017.61 | 2,092,239,240.66 | 2,265,092,332.70 |
| 4. Derivative financial liabilities | 156,359,680.92 | 156,359,680.92 | ||
| (1) Forward foreign exchange contracts | 156,359,680.92 | 156,359,680.92 | ||
| Total liabilities continuously measured at fair value | 156,359,680.92 | 156,359,680.92 | ||
2. The basis for determining the market price of continuous and non-continuous first-levelfair value measurement itemsThe derivative financial assets held by the Company and measured at the first-level fair valueare futures contracts and foreign exchange options, and the market price of futures contracts isdetermined based on the closing price of futures contracts at the end of the period; The market priceof foreign exchange options is determined according to the quotation of foreign exchange optionscontract products by financial institutions at the end of the period.
3. Qualitative and quantitative information on the valuation techniques used and importantparameters for continuous and non-continuous second-level fair value measurement items
Other non-current financial assets held by the Company and measured at the second-level fairvalue are long-term investments in fund companies, and the book value of long-term investments infund companies after evaluation can represent the best estimate of fair value within this range.
4. Qualitative and quantitative information on the valuation techniques used and important
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2024 to December 31, 2024（Unless other wise specified, RMB for record in the statement)
parameters for continuous and non-continuous third-level fair value measurement itemsOther non-current financial assets held by the Company and measured at the third-level fairvalue are investments in Sichuan Changhong Group Finance Co., Ltd. and Huishang Bank Co., Ltd.,and the fair value is estimated by a series of valuation models, and the assumptions adopted are notsupported by observable market prices or interest rates. The Company believes that the fair valueestimated by the valuation technique and its changes are reasonable and the most suitable value onthe balance sheet date.
The receivable financing held by the Company and measure at the third-level fair value is abank acceptance bill receivable, which has a small credit risk and a short remaining period. TheCompany determines its fair value based on its face balance.
XII. Related parties and related transaction(I) Relationship of related parties
1. Controlling shareholder and ultimate controller
| Controlling shareholder and ultimate controller | Registration place | Business nature | Registered capital | Share-holding ratio in the Company | Voting rights ratio in the Company |
| Sichuan Changhong Electric Co., Ltd. | Mianyang | Manufacture and sales | 4,616,244,222.00 | 27.36% | 27.36% |
(1) Controlling shareholder and ultimate controller
Sichuan Changhong Electronics Holding Group is the controlling shareholder of SichuanChanghongElectric Co., LTD, and the SASAC Mianyang office holds90% equity interests ofSichuan Changhong Electronic Holding Group, which means that SASAC Mianyang office is theultimate controller of the Company.
(2) Register capital and change thereof of controlling shareholder
| Controlling shareholder | Opening balance | Increase this period | Decrease this period | Ending balance |
| Sichuan Changhong Electric Co., Ltd. | 4,616,244,222.00 | 4,616,244,222.00 |
(3) Shares held by the controlling shareholder and its changes on equity
| Controlling shareholder | Amount of shares held | Shareholding ratio | ||
| Ending balance | Opening balance | Ratio at period-end | Ratio at period-beginning | |
| Sichuan Changhong Electric Co., Ltd. | 281,832,434.00 | 281,832,434.00 | 27.36% | 27.36% |
2. Subsidiary
Found more in Note “VIII. 1 (1) Enterprise group composition”
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2024 to December 31, 2024（Unless other wise specified, RMB for record in the statement)
3. Joint venture and associated enterprise
Other Joint venture and associated enterprise that have related transactions occurred with theCompany in Current Period or occurred in last period, and with balance results:
For details of the Company's important joint ventures or joint ventures, please refer to Note VIII (III)1: Relevant contents of important joint ventures or associated enterprise. Other Joint venture andassociated enterprise that have related transactions occurred with the Company in Current Periodor occurred in last period, and with balance results:
| Joint venture and associated enterprise | Relationship with the company |
| Changhong Ruba Electric Company (Private) Ltd. | Associated enterprise of subsidiary Zhongshan Changhong |
| Sichuan Tianyou Guigu Technology Co., Ltd | Associated enterprise of subsidiary Changhong Air-conditioner |
| Ground Energy Heat Tech. Co., Ltd | Associated enterprise of subsidiary Changhong Air-conditioner |
| Chengdu Guigu Environmental Tech. Co., Ltd | Associated enterprise of subsidiary Changhong Air-conditioner |
| Sichuan Zhiyijia Network Technology Co., Ltd. | Associated enterprise of the Company, has the same controlling shareholder and actual control of the Company |
4. Other related party
| Other related party | Relationship with the company |
| Mianyang Haili Appliance Co., Ltd. | Associated enterprise of controlling shareholder |
| Sichuan Hongyun New-Generation Information technology Venture Capital Fund Partnership (limited partnership) | Associated enterprise of controlling shareholder |
| Sichuan Hongran Green Energy Co., Ltd. | Associated enterprise of controlling shareholder |
| Sichuan Changxin Refrigeration Parts Co., Ltd. | Associated enterprise of controlling shareholder |
| Mianyang High-tech Zone Hongfu Technology Co., Ltd | An enterprise where the supervisor of the controlling shareholder acts as its legal representative |
| Sichuan Baiku Technology Co., Ltd | Associated enterprise of other enterprise that have the same controlling shareholder |
| Sichuan Hongyu Metal Manufacturing Co., Ltd. | Associated enterprise of other enterprise that have the same controlling shareholder |
| CHANGHONG (HK) TRADING LIMITED | Control by same controlling shareholder and ultimate controller |
| Changhong Europe Electric s.r.o | Control by same controlling shareholder and ultimate controller |
| CHANGHONG.ELECTRIC.(AUSTRALIA)PTY.LTD. | Control by same controlling shareholder and |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2024 to December 31, 2024（Unless other wise specified, RMB for record in the statement)
| Other related party | Relationship with the company |
| ultimate controller | |
| Orion.PDP.Co.,ltd | Control by same controlling shareholder and ultimate controller |
| PT.CHANGHONG ELECTRIC INDONESIA | Control by same controlling shareholder and ultimate controller |
| Chengdu Changhong Electronic Technology Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Guangdong Changhong Electronics Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Guangyuan Changhong Electrionics Technology Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| 081 Electronic Group Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| MianyangHongshang Real Estate Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Mianyang Huafeng Hulian Technology Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Sichuan Aichuang Science & Technology Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Sichuan Ailink Technology Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Sichuan Ansifei Technology Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Sichuan Aoku Technology Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Sichuan Hongmofang Network Technology Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Sichuan Hongwei Technology Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Sichuan Hongxin Software Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Sichuan Huafeng Technology Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Sichuan Jiahong Industry Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Sichuan Kuaiyidian Electric Appliance Service Chain Co., Ltd | Control by same controlling shareholder and ultimate controller |
| Sichuan Qineng Zhongzheng Technology Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Sichuan Qiruik Technology Co., Ltd. | Control by same controlling shareholder and ultimate controller |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2024 to December 31, 2024（Unless other wise specified, RMB for record in the statement)
| Other related party | Relationship with the company |
| Sichuan Qisai Microelectronics Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Sichuan Changhong Package Printing Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Sichuan Changhong Power Source Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Sichuan Changhong Electronic Products Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Sichuan ChanghongGerun Environmental Protection Tech. Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Sichuan Changhong International Hotel Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Sichuan Changhong Group Finance Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Sichuan ChanghongJijia Fine Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Sichuan Changhong Jiahua Information Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Sichuan Changhong Education and Technology Co., Ltd | Control by same controlling shareholder and ultimate controller |
| Sichuan ChanghongJichuang Lithium Technology Co., Ltd | Control by same controlling shareholder and ultimate controller |
| Sichuan Changhong Precision Electronics Tech. Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Sichuan Changhong Minsheng Logistics Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Sichuan Changhong Mold Plastic Tech. Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Sichuan Changhong Device Technology Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Sichuan Changhong Network Technology Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Sichuan Changhong Property Service Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Sichuan Changhong New Energy Technology Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Sichuan ChanghongXinwang Technology Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Sichuan Changhong Intelligent Manufacturing Technology Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Sichuan Changhong Real Estate Co., Ltd. | Control by same controlling shareholder and ultimate controller |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2024 to December 31, 2024（Unless other wise specified, RMB for record in the statement)
| Other related party | Relationship with the company |
| Yibin Hongxing Electric Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Yuanxin Financial Leasing Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Changhong International Holdings (Hong Kong) Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Changhua Huayi Compressor Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Zhongjiu Shining Medical Technology Co., Ltd. | Control by same controlling shareholder and ultimate controller |
(II) Related transactions
1. Purchasing commodity
| Related party | Content | Current Year （In 10 thousand yuan) | Approved tradingquota （In 10 thousand yuan) | Whether the tradinginit is exceeded | Last year （In 10 thousand yuan) |
| Sichuan Changhong Mold Plastic Tech. Co., Ltd. | Purchasing commodity | 109,355.07 | 130,000.00 | No | 79,012.78 |
| Sichuan Changxin Refrigeration Parts Co., Ltd. | Purchasing commodity | 66,108.78 | 53,476.76 | ||
| Sichuan ChanghongJijia Fine Co., Ltd. | Purchasing commodity | 65,751.66 | 65,000.00 | Yes | 47,010.15 |
| Changhong Huayi Compressor Co., Ltd. | Purchasing commodity | 56,726.83 | 80,000.00 | No | 56,361.04 |
| Mianyang Haili Appliance Co., Ltd | Purchasing commodity | 41,209.09 | 36,490.77 | ||
| Sichuan Aichuang Technology Co., Ltd. | Purchasing commodity | 15,558.82 | 30,000.00 | No | 16,847.00 |
| Sichuan Changhong Package Printing Co., Ltd. | Purchasing commodity | 14,933.66 | 20,000.00 | No | 11,012.12 |
| Sichuan Changhong Electics Co., Ltd. | Purchasing commodity | 9,529.65 | 23,000.00 | No | 34,337.22 |
| Sichuan Changhong Precision Electronics Tech. Co., Ltd. | Purchasing commodity | 3,122.63 | 4,000.00 | No | 2,515.35 |
| Sichuan Aoku Technology Co., Ltd. | Purchasing commodity | 2,576.51 | 8,000.00 | No | 2,758.52 |
| Sichuan Changhong Electronic Products Co., Ltd. | Purchasing commodity | 2,433.07 | 5,000.00 | No | 2,771.62 |
| Changhong International Holdings (Hong Kong) Co., | Purchasing commodity | 1,952.84 | 16,000.00 | No | 5,500.00 |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2024 to December 31, 2024（Unless other wise specified, RMB for record in the statement)
| Related party | Content | Current Year （In 10 thousand yuan) | Approved tradingquota （In 10 thousand yuan) | Whether the tradinginit is exceeded | Last year （In 10 thousand yuan) |
| Ltd. | |||||
| Sichuan Ailian Technology Co., Ltd. | Purchasing commodity | 1,230.76 | 3,000.00 | No | 1,234.06 |
| Guangdong Changhong Electronics Co., Ltd. | Purchasing commodity | 1,080.41 | 6,000.00 | No | 753.21 |
| Sichuan Zhiyijia Network Technology Co., Ltd. | Purchasing commodity | 604.42 | 6,000.00 | No | 806.22 |
| Sichuan Changhong Device Technology Co., Ltd | Purchasing commodity | 501.45 | 6,000.00 | No | 797.63 |
| Changhong Ruba Electric Company(Private)Ltd. | Purchasing commodity | 409.17 | 1,318.25 | ||
| Sichuan Hongran Green Energy Co., Ltd. | Purchasing commodity | 132.33 | 145.41 | ||
| Sichuan Changhong New Energy Technology Co., Ltd. | Purchasing commodity | 80.08 | 5,000.00 | No | 20.18 |
| Sichuan Hongwei Technology Co., Ltd. | Purchasing commodity | 33.49 | 6,000.00 | No | 4.72 |
| Sichuan Changhong International Hotel Co., Ltd. | Purchasing commodity | 3.31 | 5,000.00 | No | 3.23 |
| Sichuan Jiahong Industrial Co., Ltd. | Purchasing commodity | 0.99 | 5,000.00 | No | 2.80 |
| Sichuan Changhong Intelligent Manufacturing Technology Co., Ltd. | Purchasing commodity | 0.49 | 5,000.00 | No | 0.05 |
| GuangyuanChanghong Electronic Technology Co., Ltd | Purchasing commodity | 160.34 | |||
| CHANGHONG (HK) TRADING LIMITED | Purchasing commodity | 120.12 | |||
| 081 Electronic Group Co., Ltd. | Purchasing commodity | 5.30 | |||
| Sichuan Hongyu Metal Manufacturing Co., Ltd. | Purchasing commodity | 1.47 | |||
| Sichuan Service Exp. Appliance Service Chain Co., Ltd. | Purchasing commodity | 0.18 | |||
| Sichuan Changhong Source Co., Ltd. | Purchasing commodity | 0.18 | |||
| Total | 640,275.63 | 357,182.46 |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2024 to December 31, 2024（Unless other wise specified, RMB for record in the statement)
2. Accept the services
| Related party | Content | Current Year | Approved trading quota | Whether the trading limit is exceeded | Last Year |
| Sichuan Changhong Minsheng Logistics Co., Ltd. | Accept the services | 690,604,599.29 | 750,000,000.00 | No | 683,224,664.94 |
| Sichuan Service Exp. Appliance Service Chain Co., Ltd. | Accept the services | 388,970,261.6 | 510,000,000.00 | No | 318,337,233.03 |
| Sichuan Changhong Mold Plastic Tech. Co., Ltd. | Accept the services | 41,840,238.31 | 100,000,000.00 | No | 40,943,864.06 |
| Sichuan Changhong Electric Co., Ltd. | Accept the services | 29,383,913.77 | 75,000,000.00 | No | 3,886,724.22 |
| Sichuan Qiruik Technology Co., Ltd. | Accept the services | 9,037,166.72 | 50,000,000.00 | No | 9,907,402.78 |
| Sichuan Changxin Refrigeration Part Co., Ltd. | Accept the services | 8,616,507.40 | 2,113,071.18 | ||
| Sichuan Jiahong Industrial Co., Ltd. | Accept the services | 7,053,542.74 | 50,000,000.00 | No | 5,580,266.42 |
| Sichuan ChanghongJijia Fine Co., Ltd. | Accept the services | 4,513,721.37 | 30,000,000.00 | No | 7,801,048.46 |
| Sichuan Hongwei Technology Co., Ltd. | Accept the services | 2,791,966.25 | 75,000,000.00 | No | 6,920.35 |
| Sichuan Changhong Electronics Holding Group Co., Ltd. | Accept the services | 2,447,354.74 | 2,938,000,000.00 | No | 2,836,845.39 |
| Sichuan Hongxin Software Co., Ltd. | Accept the services | 1,982,132.08 | 75,000,000.00 | No | 13,997,853.78 |
| Sichuan Changhong International Hotel Co., Ltd. | Accept the services | 1,306,322.67 | 50,000,000.00 | No | 736,015.39 |
| Mianyang High-tech Zone Hongfu Technology Co., Ltd | Accept the services | 1,293,081.71 | 2,000,000.00 | No |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2024 to December 31, 2024（Unless other wise specified, RMB for record in the statement)
| Related party | Content | Current Year | Approved trading quota | Whether the trading limit is exceeded | Last Year |
| Sichuan Aichuang Technology Co., Ltd. | Accept the services | 620,668.67 | 50,000,000.00 | No | 1,371,321.88 |
| Guangdong Changhong Electronics Co., Ltd. | Accept the services | 306,937.56 | 75,000,000.00 | No | 1,112,606.43 |
| Sichuan Changhong Electronic Products Co., Ltd. | Accept the services | 221,109.20 | 75,000,000.00 | No | |
| Sichuan Changhong Gerun Environmental Protection Technology Co., Ltd | Accept the services | 118,705.94 | 50,000,000.00 | No | 325,332.17 |
| Sichuan Changhong Property Service Co., Ltd. | Accept the services | 112,407.14 | 50,000,000.00 | No | 145,611.44 |
| Sichuan Zhiyijia Network Technology Co., Ltd. | Accept the services | 105,496.47 | 75,000,000.00 | No | 139,286.01 |
| Chengdu Guigu Environmental Tech. Co., Ltd | Accept the services | 84,905.66 | |||
| Sichuan Changhong Electric Product Co., Ltd. | Accept the services | 34,147.70 | 75,000,000.00 | No | 275,044.71 |
| Sichuan Changhong Network Technology Co., Ltd. | Accept the services | 30,517.92 | 75,000,000.00 | No | 30,517.92 |
| Sichuan Changhong New Network Technology Co., Ltd. | Accept the services | 8,532.11 | 75,000,000.00 | No | |
| Sichuan Changhong Intelligent Manufacturing | Accept the services | 6,042.83 | 75,000,000.00 | No | 94,339.62 |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2024 to December 31, 2024（Unless other wise specified, RMB for record in the statement)
| Related party | Content | Current Year | Approved trading quota | Whether the trading limit is exceeded | Last Year |
| Technology Co., Ltd. | |||||
| Sichuan Hongfangfang Network Technology Co., Ltd | Accept the services | 94,339.62 | |||
| Yuanxin Financial Leasing Co., Ltd. | Accept the services | 214,645.83 | |||
| Orion.PDP.Co.,ltd | Accept the services | 50,097.44 | |||
| Sichuan Ailink Technology Co., Ltd. | Accept the services | 10,754.72 | |||
| Total | 1,191,490,279.91 | 1,093,141,468.17 |
3. Sales of goods
| Related party | Content | Current Period(in 10 thousand Yuan) | Last Period(in 10 thousand Yuan) |
| Sichuan Zhiyijia Network Technology Co., Ltd. | Sales of goods | 734,224.78 | 728,895.73 |
| CHANGHONG (HK) TRADING LIMITED | Sales of goods | 65,382.61 | 69,999.52 |
| CHANGHONG ELECTRIC (AUSTRALIA) PTY.LTD. | Sales of goods | 25,696.65 | 17,630.27 |
| Changhong International Holdings (Hong Kong) Co., Ltd. | Sales of goods | 17,436.75 | 11,246.60 |
| Changhong Europe Electric s.r.o | Sales of goods | 9,553.85 | 10,299.23 |
| Orion.PDP.Co.,ltd | Sales of goods | 4,062.24 | 4,478.34 |
| Mianyang Huafeng Hulian Technology Co., Ltd. | Sales of goods | 790.27 | |
| Sichuan Service Exp. Appliance Service Chain Co., Ltd. | Sales of goods | 616.30 | 654.81 |
| Yuanxin Financial Leasing Co., Ltd | Sales of goods | 256.85 | |
| PT.CHANGHONG ELECTRIC INDONESIA | Sales of goods | 194.30 | |
| Sichuan Changhong Minsheng Logistic | Sales of goods | 177.14 | 79.93 |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2024 to December 31, 2024（Unless other wise specified, RMB for record in the statement)
| Related party | Content | Current Period(in 10 thousand Yuan) | Last Period(in 10 thousand Yuan) |
| Co., Ltd. | |||
| Sichuan Changhong Electric Co., Ltd. | Sales of goods | 121.69 | 472.04 |
| Sichuan Changhong New Energy Technology Co.,Ltd. | Sales of goods | 98.75 | - |
| Sichuan ChanghongGerun Environmental Protection Technology Co., Ltd | Sales of goods | 98.43 | - |
| Sichuan Changhong Device Technology Co., Ltd | Sales of goods | 95.13 | 14.81 |
| Sichuan Changhong Jiahua Information Products Co., Ltd | Sales of goods | 43.24 | |
| Chengdu Guigu Environmental Technology Co., Ltd | Sales of goods | 29.05 | 43.78 |
| Sichuan Aiku Technology Co., Ltd. | Sales of goods | 25.52 | 21.93 |
| Sichuan Changhong Mold Plastic Tech. Co., Ltd. | Sales of goods | 17.23 | 21.18 |
| Sichuan Changhong Electric Holdings Group Co., Ltd. | Sales of goods | 14.67 | 0.60 |
| Sichuan Ailian Technology Co., Ltd. | Sales of goods | 10.54 | 0.78 |
| Sichuan Changhong Network Technology Co., Ltd. | Sales of goods | 7.54 | |
| Sichuan Baiku Technology Co.,Ltd.; | Sales of goods | 2.99 | 19.20 |
| Sichuan Changhong Real Estate Co., Ltd. | Sales of goods | 2.39 | 6.11 |
| Sichuan Aichuang Technology Co., Ltd. | Sales of goods | 2.26 | 407.43 |
| MianyangHongsheng Real Estate Co., Ltd. | Sales of goods | 1.59 | |
| Sichuan ChanghongJija Fine Co., Ltd. | Sales of goods | 1.09 | 2.68 |
| Sichuan Changhong Power Source Co., Ltd. | Sales of goods | 0.75 | 5.46 |
| Sichuan Hongwei Technology Co.,Ltd. | Sales of goods | 0.16 | |
| Sichuan Changhong International Hotel Co., Ltd. | Sales of goods | 0.11 | |
| Sichuan Changhong Intelligent Manufacturing Technology Co., Ltd. | Sales of goods | 258.76 | |
| Sichuan ChanghongJihuang Lithium Technology Co., Ltd | Sales of goods | 114.78 | |
| Sichuan Tianyou Guigu Technology Co., Ltd. | Sales of goods | 96.18 | |
| Changhong Huayi Compressor Co., Ltd. | Sales of goods | 89.44 |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2024 to December 31, 2024（Unless other wise specified, RMB for record in the statement)
| Related party | Content | Current Period(in 10 thousand Yuan) | Last Period(in 10 thousand Yuan) |
| Guangyuan Changhong Electronic Technology Co., Ltd | Sales of goods | 31.76 | |
| Guangdong Changhong Electronic Co., Ltd. | Sales of goods | 27.03 | |
| Ground Energy Heat Pump Tech. Co., Ltd. | Sales of goods | 23.32 | |
| Zhongji Flash Medical Technology Co., Ltd | Sales of goods | 14.57 | |
| Sichuan Qineng Zhongzheng Technology Co., Ltd | Sales of goods | 9.85 | |
| Yibin Hongxing Electric Co., Ltd. | Sales of goods | 8.67 | |
| Sichuan Hongmofang Network Technology Co., Ltd. | Sales of goods | 6.06 | |
| Sichuan Qisai Microelectronics Co.,Ltd. | Sales of goods | 4.99 | |
| Sichuan Changhong Precision Electronic Technology Co., Ltd | Sales of goods | 1.08 | |
| Sichuan Jiahong Industril Co., Ltd. | Sales of goods | 0.84 | |
| Sichuan Changhong Property Service Co., Ltd. | Sales of goods | 0.46 | |
| Sichuan Qiruik Technology Co., Ltd. | Sales of goods | 0.27 | |
| Sichuan Ansifei Technology Co., Ltd. | Sales of goods | 0.01 | |
| Total | 858,964.87 | 844,988.50 |
4. Providing services
| Related party | Content | Current Year | Last Year |
| Mianyang Huafeng Hulian Technology Co., Ltd. | Provide the services | 10,724,113.48 | 349,753.68 |
| Sichuan Changhong Electric Co., Ltd. | Providing services | 7,577,406.09 | 11,395,693.06 |
| Sichuan Changhong Mold Plastic Tech. Co., Ltd. | Providing services | 4,099,830.16 | 3,690,091.63 |
| Sichuan Service Exp. Appliance Service Chain Co., Ltd. | Provide the services | 1,463,906.78 | 2,337,991.38 |
| Changhong Huayi Compressor Co., Ltd. | Provide the services | 1,396,465.80 | 1,343,950.04 |
| Sichuan Aichuang Technology Co., Ltd. | Providing services | 955,904.56 | 4,743,474.93 |
| Sichuan Changhong New Energy Technology Co., Ltd. | Providing services | 660,622.02 | |
| Yuanxin Financial Leasing Co., Ltd. | Providing services | 570,024.15 | 907,791.40 |
| Sichuan Changhong Device Technology Co., Ltd | Providing services | 552,789.38 | 124,018.93 |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2024 to December 31, 2024（Unless other wise specified, RMB for record in the statement)
| Related party | Content | Current Year | Last Year |
| Sichuan ChanghongJija Fine Co., Ltd. | Provide the services | 455,956.13 | 229,038.19 |
| Sichuan Changhong Property Service Co., Ltd. | Providing services | 214,043.74 | 259,029.87 |
| Sichuan Changhong Network Technology Co., Ltd. | Provide the services | 173,539.62 | 268,020.00 |
| Sichuan Changhong Minsheng Logistics Co., Ltd. | Providing services | 136,628.82 | 425,430.66 |
| Sichuan Zhiyijia Network Technology Co., Ltd. | Providing services | 101,440.08 | 185,395.50 |
| Changhong International Holdings (Hong Kong) Limited | Providing services | 101,351.88 | |
| Sichuan Aoku Technology Co., Ltd. | Providing services | 77,946.40 | 4,456.25 |
| Sichuan Changhong Jihuang Lithium Technology Co., Ltd | Providing services | 53,864.91 | 2,277,747.12 |
| Sichuan Changhong International Hotel Co., Ltd | Providing services | 42,909.37 | 65,714.90 |
| Sichuan Changhong Education and Technology Co., Ltd | Providing services | 9,000.00 | 9,000.00 |
| Chengdu Guigu Environment Technology Co., Ltd. | Provide the services | 8,391.23 | 10,061.17 |
| Sichuan Changhong Electric Group Co., Ltd. | Providing services | 5,875.00 | 6,742.60 |
| Sichuan Changhong Electric Part Co., Ltd. | Providing services | 3,600.00 | 7,200.00 |
| Sichuan Ailan Technology Co.,Ltd. | Providing services | 3,229.42 | |
| Sichuan Qiruik Technology Co., Ltd. | Provide the services | 1,446.00 | 95,653.62 |
| Guangdong Changhong Electronics Co., Ltd | Providing services | 627,354.91 | |
| Sichuan Qineng Zhongzheng Technology Co., Ltd. | Providing services | 108,865.14 | |
| Sichuan Hongwei Technology Co.,Ltd | Providing services | 69,735.85 | |
| Sichuan Changhong Real Estate Co., Ltd. | Provide the services | 45,992.16 | |
| Sichuan Qisai \Microelectonics Co., Ltd. | Providing services | 44,593.58 | |
| Sichuan Changhong Precision Electronic Technology Co., Ltd | Providing services | 21,039.34 | |
| Mianyang Huafeng Technology Co., Ltd. | Providing services | -11,201.00 | 576,234.00 |
| Sichuan Changhong Network Technology Co., Ltd. | Provide the services | -101,370.00 | 16,670.00 |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2024 to December 31, 2024（Unless other wise specified, RMB for record in the statement)
| Related party | Content | Current Year | Last Year |
| Total | 29,277,714.02 | 30,246,739.91 |
5. Related rental
(1) Rent out
| Lessor | Lessee | Type of assets | Leasing income in Current Period | Leasing income in Last Period |
| Changhong Meiling | Sichuan Changhong Mold Plastic Tech. Co., Ltd. | Apartments, warehouses, factories | 1,998,754.51 | 2,956,810.97 |
| Changhong Meiling | Sichuan Changhong Jijia Fine Co., Ltd. | apartment, forklift, warehouse | 796,113.61 | 950,642.38 |
| Changhong Meiling | Sichuan Changhong Minsheng Logistics Co., Ltd. | apartment, office | 219,708.07 | 206,115.96 |
| Changhong Meiling | Sichuan Service Exp. Appliance Service Chain Co., Ltd. | Apartments, Offices, Forklifts | 202,690.08 | 162,376.19 |
| Changhong Meiling | Sichuan Zhiyijia Network Technology Co., Ltd. | Apartment | 188,256.88 | 188,256.88 |
| Changhong Meiling | Sichuan Aoku Technology Co., Ltd. | Warehouse | 5,858.10 | 43,392.81 |
| Changhong Meiling | Sichuan Hongxin Software Co., Ltd. | Apartments | 4,400.00 | |
| Changhong Meiling | Sichuan Changhong Precision Electronic Technology Co., Ltd | Apartments | 1,105.00 | |
| Changhong Meiling | Sichuan Aichuang Science & Technology Co., Ltd. | Warehouse | 39,014.00 | |
| Changhong Meiling | Changhong Huayi Compressor Co., Ltd. | Warehouse | 5,811.32 | |
| Changhong Meiling | Sichuan Ailink Technology Co., Ltd. | Warehouse | 3,496.76 | |
| Changhong Air-conditioner | Sichuan Changhong Mold Plastic Tech. Co., Ltd. | Factory buildings and equipment | 5,716,010.19 | 5,524,818.10 |
| Changhong Air-conditioner | Sichuan Changhong Jijia Fine Co., Ltd. | Factory buildings and equipment | 3,706,088.50 | 3,662,397.40 |
| Changhong Air-conditioner | Sichuan Changhong Electric Co., Ltd. | Factory buildings and equipment | 844,041.16 | 807,070.04 |
| Changhong Air-conditioner | Sichuan Changxin Refrigeration Parts Co., Ltd. | Processing equipment of U | 53,333.35 | 159,999.98 |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2024 to December 31, 2024（Unless other wise specified, RMB for record in the statement)
| Lessor | Lessee | Type of assets | Leasing income in Current Period | Leasing income in Last Period |
| Changhong Air-conditioner | Chengdu Guigu Environmental Tech. Co., Ltd | Workshop | 28,403.67 | 28,403.67 |
| Changhong Air-conditioner | Sichuan Changhong Electric Holding Co., Ltd. | Workshop | 4.49 | |
| Ridian Technology | Sichuan Changhong Device Technology Co., Ltd. | Workshop | 1,285,985.43 | 2,147,149.80 |
| ChanghongRidian | Sichuan Changhong Precision Electronics Tech. Co., Ltd. | Workshop | 845,919.00 | |
| ChanghongRidian | Sichuan Ailink Technology Co., Ltd. | Workshop | 47,314.29 | 47,314.29 |
| Zhongshan Changhong | Sichuan Changhong Minsheng Logistics Co., Ltd. | Parts of the office building rent-out | 44,297.16 | 44,297.16 |
| Zhongshan Changhong | Sichuan Changhong Moulding Tech. Co., Ltd. | living area | 34,946.67 | |
| Zhongshan Changhong | Sichuan Changhong Precision Electronics Tech. Co., Ltd. | living area | 67,200.00 | |
| Jiangxi Meiling | Sichuan Changhong Minsheng Logistics Co., Ltd. | Warehouse | 1,016,358.11 | 822,288.36 |
| Jiangxi Meiling | Sichuan ChanghongJijia Fine Co., Ltd. | warehouse | 16,000.00 | 8,000.00 |
| Jiangxi Meiling | Sichuan Aichuang Science & Technology Co., Ltd. | Warehouse | 9,600.00 | 9,600.00 |
| Jiangxi Meiling | Sichuan Changhong Minsheng Logistics Co., Ltd. | Workshop | 9,142.86 | 9,142.86 |
| Jiangxi Meiling | Sichuan Aoku Technology Co., Ltd. | Warehouse | 3,840.00 | |
| Jiangxi Meiling | Changhong Huayi Compressor Co., Ltd. | Warehouse | 4,800.00 | |
| Hefei Industrial | Sichuan Changhong Mold Plastic Tech. Co., Ltd. | Workshop | 9,538,474.71 | |
| Hefei Industrial | Sichuan ChanghongJijia Fine Co., Ltd. | Workshop | 2,451,535.20 | 2,451,535.20 |
| Hefei Industrial | Sichuan Service Exp. Appliance Service Chain Co., Ltd. | Workshop | 243,950.40 | 21,600.00 |
| Hefei Industrial | Sichuan Changhong Minsheng Logistics Co., Ltd. | Workshop | 202,464.00 | 260,150.40 |
| Hefei Industrial | Sichuan Changhong Education and Technology Co., LTD | Workshop | 17,280.00 | 6,898,252.83 |
| Hefei Industrial | Sichuan Changhong Precision Electronic Technology Co., Ltd | Workshop | 12,672,547.93 |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2024 to December 31, 2024（Unless other wise specified, RMB for record in the statement)
| Lessor | Lessee | Type of assets | Leasing income in Current Period | Leasing income in Last Period |
| Total | 29,491,419.28 | 40,242,941.45 |
(2)Lessee of related parties
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2024 to December 31, 2024（Unless other wise specified, RMB for record in the statement)
| Lessor | Lessee | Type of assets | Rental charges for short-term and low-value assets (if any) | Variable lease payments not included in lease liabilities measurement (if any) | Rent paid | Interest expenses on lease liabilities assumed | Increased use right assets | |||||
| Amount of current period | Amount of previous period | Amount of current period | Amount of previous period | Amount of current period | Amount of previous period | Amount of current period | Amount of previous period | Amount of current period | Amount of previous period | |||
| Changhong Huayi Compressor Co., Ltd. | Jiangxi Meiling | Staff dormitory | 114,803.62 | 115,810.67 | ||||||||
| Chengdu Changhong Electronic Technology Co., Ltd. | Hongmei Intelligent | Office | 128,587.13 | 11,572.84 | 746,115.01 | |||||||
| Chengdu Changhong Electronic Technology Co., Ltd. | Hongmei Intelligent | Office | 658,462.06 | 678,008.96 | 32,923.10 | 47,945.48 | 658,462.06 | |||||
| Sichuan Zhiyijia Network | Changhong Air-conditio | Office | 4,954.13 | |||||||||
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2024 to December 31, 2024（Unless other wise specified, RMB for record in the statement)
| Technology Co., Ltd. | ner | |||||||||||
| Sichuan Jiahong Industrial Co., Ltd. | Changhong Air-conditioner | Staff dormitory | 432,717.96 | 399,176.91 | ||||||||
| Sichuan Changhong Electric Co., Ltd. | Changhong Air-conditioner | Workshop | 240,198.20 | |||||||||
| Sichuan Changhong Electronics Holding Group Co., Ltd. | Changhong Air-conditioner | Rent | 143,252.58 | 188,111.04 | 7,014.92 | 376,222.06 | ||||||
| Sichuan Changhong Electric Co., Ltd. | Changhong Air-conditioner | VISA laboratory | 306,863.00 | 306,863.00 | 34,315.04 | 34,315.04 | 1,534,315.05 | |||||
| Guangdong Changhong Electronics Co., Ltd. | Ground energy heat pump | Staff dormitory | 81,398.37 | 80,355.16 | ||||||||
| Sichuan Jiahong Industrial Co., Ltd. | Intelligent air conditioning | Staff dormitory | 88,304.15 | |||||||||
| Sichuan Changhong | Mianyang Meiling | Workshop | 97,312.98 | 96,779.07 | 2,132,911.64 | 2,831,656.00 | 1,067,896.18 | 451,647.92 | 48,252,806.05 | 26,088,842.03 |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2024 to December 31, 2024（Unless other wise specified, RMB for record in the statement)
| Electric Co., Ltd. | ||||||||||||
| Sichuan Jiahong Industrial Co., Ltd. | Mianyang Meiling | Staff dormitory | 31,379.40 | 32,599.20 | ||||||||
| Chengdu Changhong Electric Technology Co., Ltd. | Meiling Life appliance | Office | 130,997.43 | |||||||||
| Guangdong Changhong Electronics Co., Ltd. | Ridian Technology | Staff dormitory | 41,405.14 | 64,994.60 | ||||||||
| Total | 1,132,473.95 | 1,063,965.62 | 3,414,934.87 | 3,816,527.96 | 1,153,722.08 | 533,908.44 | 50,033,605.18 | 27,623,157.08 |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2024 to December 31, 2024（Unless other wise specified, RMB for record in the statement)
6. Related guarantee
| Secured party | Sponsored party | Maximum guarantee amount | Start | Date due | Completed (Y/N) |
| Guarrantee： | (In 10 thousand Yuan) | Fulfill | |||
| Changhong Meiling | Meiling Group | 4,500.00 | 2023-5-11 | 2024-5-11 | Yes |
| Changhong Meiling | Meiling Group | 8,000.00 | 2023-7-12 | 2024-7-11 | Yes |
| Changhong Meiling | Meiling Group | 20,000.00 | 2024-10-16 | 2027-10-15 | No |
| Changhong Meiling | Ridian Technology | 4,000.00 | 2023-7-8 | 2024-7-8 | Yes |
| Changhong Meiling | Ridian Technology | 3,500.00 | 2022-11-10 | 2023-11-9 | Yes |
| Changhong Meiling | Ridian Technology | 3,500.00 | 2024-2-6 | 2024-12-28 | No |
| Changhong Meiling | Zhongshan Changhong | 15,000.00 | 2022-8-15 | 2023-8-14 | Yes |
| Changhong Meiling | Zhongshan Changhong | 10,000.00 | 2023-5-30 | 2024-5-29 | Yes |
| Changhong Meiling | Zhongshan Changhong | 6,000.00 | 2023-3-15 | 2024-3-15 | Yes |
| Changhong Meiling | Zhongshan Changhong | 7,000.00 | 2023-6-15 | 2024-6-14 | Yes |
| Changhong Meiling | Zhongshan Changhong | 10,000.00 | 2023-5-11 | 2024-5-10 | Yes |
| Changhong Meiling | Zhongshan Changhong | 15,000.00 | 2023-8-23 | 2024-8-23 | Yes |
| Changhong Meiling | Zhongshan Changhong | 20,000.00 | 2023-7-3 | 2024-7-3 | Yes |
| Changhong Meiling | Zhongshan Changhong | 5,000.00 | 2023-7-28 | 2024-7-27 | Yes |
| Changhong Meiling | Zhongshan Changhong | 10,000.00 | 2023-5-12 | 2024-5-12 | Yes |
| Changhong Meiling | Zhongshan Changhong | 5,000.00 | 2023-11-2 | 2024-11-2 | Yes |
| Changhong Meiling | Meiling Life Appliances | 5,000.00 | 2022-10-26 | 2023-10-25 | Yes |
| Changhong Meiling | Meiling Life Appliances | 2,000.00 | 2023-4-24 | 2024-4-23 | Yes |
| Changhong Meiling | Meiling Life Appliances | 5,000.00 | 2024-1-1 | 2024-8-14 | Yes |
| Changhong Meiling | Meiling Life | 8,000.00 | 2023-2-22 | 2024-1-12 | Yes |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2024 to December 31, 2024（Unless other wise specified, RMB for record in the statement)
| Secured party | Sponsored party | Maximum guarantee amount | Start | Date due | Completed (Y/N) |
| Appliances | |||||
| Changhong Meiling | Meiling Life Appliances | 8,000.00 | 2024-1-22 | 2025-1-22 | No |
| Changhong Meiling | Meiling Life Appliances | 5,000.00 | 2023-4-21 | 2024-4-21 | Yes |
| Changhong Meiling | Meiling Life Appliances | 2,000.00 | 2023-11-3 | 2024-11-2 | Yes |
| Changhong Meiling | Meiling Life Appliances | 10,000.00 | 2023-12-1 | 2024-11-30 | No |
| Changhong Meiling | Meiling Life Appliances | 4,000.00 | 2023-12-15 | 2024-6-4 | Yes |
| Changhong Meiling | Changhong air-conditioner | 60,000.00 | 2023-3-18 | 2024-3-18 | Yes |
| Changhong Meiling | Changhong air-conditioner | 12,000.00 | 2023-4-14 | 2024-4-13 | Yes |
| Changhong Meiling | Changhong air-conditioner | 10,000.00 | 2023-1-17 | 2023-10-11 | Yes |
| Changhong Meiling | Changhong air-conditioner | 5,000.00 | 2023-1-17 | 2024-1-16 | Yes |
| Changhong Meiling | Changhong air-conditioner | 16,000.00 | 2023-2-27 | 2024-2-26 | Yes |
| Changhong Meiling | Changhong air-conditioner | 30,000.00 | 2023-3-16 | 2024-3-16 | Yes |
| Changhong Meiling | Changhong air-conditioner | 1,500.00 | 2023-7-5 | 2023-12-13 | Yes |
| Changhong Meiling | Changhong air-conditioner | 60,000.00 | 2024-6-18 | 2024-12-31 | No |
| Zhongke Meiling | Anhui Tuoxing | 1,000.00 | 2023-6-20 | 2024-6-4 | Yes |
| Zhongke Meiling | Anhui Tuoxing | 400.00 | 2023-8-15 | 2024-8-14 | No |
| Zhongke Meiling | Anhui Tuoxing | 1,000.00 | 2023-10-20 | 2024-10-20 | Yes |
| Zhongke Meiling | Anhui Tuoxing | 1,000.00 | 2024-7-24 | 2025-6-17 | No |
| Zhongke Meiling | Lingan Medical | 1,000.00 | 2023-8-25 | 2024-8-24 | Yes |
| Zhongke Meiling | Lingan Medical | 1,000.00 | 2023-10-20 | 2024-10-20 | Yes |
| Zhongke Meiling | Lingan Medical | 1,000.00 | 2024-10-31 | 2025-10-30 | No |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2024 to December 31, 2024（Unless other wise specified, RMB for record in the statement)
| Secured party | Sponsored party | Maximum guarantee amount | Start | Date due | Completed (Y/N) |
| Counter guarrantee： | |||||
| Meiling Group | Changhong Meiling | 4,500.00 | 2023-5-11 | 2024-5-11 | Yes |
| Meiling Group | Changhong Meiling | 8,000.00 | 2023-7-12 | 2024-7-11 | Yes |
| Meiling Group | Changhong Meiling | 20,000.00 | 2024-10-16 | 2027-10-15 | No |
| Ridian Technology | Changhong Meiling | 4,000.00 | 2023-7-8 | 2024-7-8 | Yes |
| Ridian Technology | Changhong Meiling | 3,500.00 | 2022-11-10 | 2023-11-9 | Yes |
| Ridian Technology | Changhong Meiling | 3,500.00 | 2024-2-6 | 2024-12-28 | No |
| Zhongshan Changhong | Changhong Meiling | 15,000.00 | 2022-8-15 | 2023-8-14 | Yes |
| Zhongshan Changhong | Changhong Meiling | 10,000.00 | 2023-5-30 | 2024-5-29 | Yes |
| Zhongshan Changhong | Changhong Meiling | 6,000.00 | 2023-3-15 | 2024-3-15 | Yes |
| Zhongshan Changhong | Changhong Meiling | 7,000.00 | 2023-6-15 | 2024-6-14 | Yes |
| Zhongshan Changhong | Changhong Meiling | 10,000.00 | 2023-5-11 | 2024-5-10 | Yes |
| Zhongshan Changhong | Changhong Meiling | 15,000.00 | 2023-8-23 | 2024-8-23 | Yes |
| Zhongshan Changhong | Changhong Meiling | 20,000.00 | 2023-7-3 | 2024-7-3 | Yes |
| Zhongshan Changhong | Changhong Meiling | 5,000.00 | 2023-7-28 | 2024-7-27 | Yes |
| Zhongshan Changhong | Changhong Meiling | 10,000.00 | 2023-5-12 | 2024-5-12 | Yes |
| Zhongshan Changhong | Changhong Meiling | 5,000.00 | 2023-11-2 | 2024-11-2 | Yes |
| Meiling Life Appliances | Changhong Meiling | 5,000.00 | 2022-10-26 | 2023-10-25 | Yes |
| Meiling Life Appliances | Changhong Meiling | 2,000.00 | 2023-4-24 | 2024-4-23 | Yes |
| Meiling Life Appliances | Changhong Meiling | 5,000.00 | 2024-1-1 | 2024-8-14 | Yes |
| Meiling Life Appliances | Changhong Meiling | 8,000.00 | 2023-2-22 | 2024-1-12 | Yes |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2024 to December 31, 2024（Unless other wise specified, RMB for record in the statement)
| Secured party | Sponsored party | Maximum guarantee amount | Start | Date due | Completed (Y/N) |
| Meiling Life Appliances | Changhong Meiling | 8,000.00 | 2024-1-22 | 2025-1-22 | No |
| Meiling Life Appliances | Changhong Meiling | 5,000.00 | 2023-4-21 | 2024-4-21 | Yes |
| Meiling Life Appliances | Changhong Meiling | 2,000.00 | 2023-11-3 | 2024-11-2 | Yes |
| Meiling Life Appliances | Changhong Meiling | 10,000.00 | 2023-12-1 | 2024-11-30 | No |
| Meiling Life Appliances | Changhong Meiling | 4,000.00 | 2023-12-15 | 2024-6-4 | Yes |
| Changhong air-conditioner | Changhong Meiling | 60,000.00 | 2023-3-18 | 2024-3-18 | Yes |
| Changhong air-conditioner | Changhong Meiling | 12,000.00 | 2023-4-14 | 2024-4-13 | Yes |
| Changhong air-conditioner | Changhong Meiling | 10,000.00 | 2023-1-17 | 2023-10-11 | Yes |
| Changhong air-conditioner | Changhong Meiling | 5,000.00 | 2023-1-17 | 2024-1-16 | Yes |
| Changhong air-conditioner | Changhong Meiling | 16,000.00 | 2023-2-27 | 2024-2-26 | Yes |
| Changhong air-conditioner | Changhong Meiling | 30,000.00 | 2023-3-16 | 2024-3-16 | Yes |
| Changhong air-conditioner | Changhong Meiling | 1,500.00 | 2023-7-5 | 2023-12-13 | Yes |
| Changhong air-conditioner | Changhong Meiling | 60,000.00 | 2024-6-18 | 2024-12-31 | No |
| Anhui Tuoxing | Zhongke Meiling | 1,000.00 | 2023-6-20 | 2024-6-4 | Yes |
| Anhui Tuoxing | Zhongke Meiling | 400.00 | 2023-8-15 | 2024-8-14 | No |
| Anhui Tuoxing | Zhongke Meiling | 1,000.00 | 2023-10-20 | 2024-10-20 | Yes |
| Anhui Tuoxing | Zhongke Meiling | 1,000.00 | 2024-7-24 | 2025-6-17 | No |
| Lingan Medical | Zhongke Meiling | 1,000.00 | 2023-8-25 | 2024-8-24 | Yes |
| Lingan Medical | Zhongke Meiling | 1,000.00 | 2023-10-20 | 2024-10-20 | Yes |
| Lingan Medical | Zhongke Meiling | 1,000.00 | 2024-10-31 | 2025-10-30 | No |
7. Assets transfer and debt reorganization of related parties
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2024 to December 31, 2024（Unless other wise specified, RMB for record in the statement)
| Related party | Type | Current Period | Last Period |
| Sichuan Changhong Electric Co., Ltd. | Sale of Fixed assets | 1,761,621.34 | |
| Sichuan Qiruik Technology Co., Ltd. | Sale of Fixed assets | 359,033.63 | |
| Guangdong Changhong Electric Co., Ltd. | Sale of Fixed assets | 83,599.99 | |
| Sichuan Changhong Mold Paasitic Technology Co., Ltd | Sale of Fixed assets | 58,103.56 | |
| Sichuan Service Exp. Appliance Service Chain Co., Ltd. | Sale of Fixed assets | 14,493.81 | |
| Sichuan Hongxin Software Co., Ltd. | Purchase and construction of fixed assets | 1,551,878.45 | 3,061,404.42 |
| Sichuan Changhong Electric Co., Ltd. | Construction of fixed assets | 952,598.21 | 428,600.00 |
| Sichuan Changhong Intelligent Manufacturing Technology Co., Ltd. | Purchase and construction of fixed assets | 352,395.49 | 2,100,406.26 |
| Sichuan Hongwei Technology Co., Ltd. | Purchase and construction of fixed assets | 281,000.00 | |
| Sichuan Qiruik Technology Co., Ltd. | Purchase and construction of fixed assets | 146,900.00 | |
| Sichuan Changhong Electronics Holding Group Co., Ltd. | Purchase and construction of fixed assets | 1,698,113.21 | |
| Sichuan Changhong Jiahua Information Product Co., Ltd. | Purchase and | 275,800.17 |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2024 to December 31, 2024（Unless other wise specified, RMB for record in the statement)
| construction of fixed assets | |||
| Chengdu Guigu Environment Technology Co., Ltd. | Purchase and construction of fixed assets | 50,600.00 | |
| 081 Electronic Group Co., Ltd. | Purchase and construction of fixed assets | 184,634.57 | |
| Sichuan Zhiyijia Network Technology Co., Ltd. | Purchase and construction of fixed assets | 78,818.00 | 40,519.46 |
| Sichuan Hongxin Software Co., Ltd. | Purchase of intangible assets | 679,245.28 | 3,192,988.66 |
| Sichuan Qiruik Technology Co., Ltd. | Purchase of intangible assets | 288,000.00 | |
| Total | 6,504,322.33 | 11,136,432.18 |
8. Other related party transactions
| Name of company | Content | Current Period (in 10 thousand Yuan) | Last Period (in 10 thousand Yuan) |
| Yuanxin Financial Leasing Co., Ltd. | Financing business | 149,852.72 | 47,232.36 |
9. Related transaction with Changhong Finance Company
(1) Saving balance
| Name of company | Ending balance | Opening balance | Interest income from bank saving in the period |
| Changhong Meiling Co., Ltd. | 1,415,028,147.56 | 2,052,187,201.79 | 45,273,962.71 |
| Zhongshan Changhong Electric Co., Ltd | 1,283,231,387.72 | 761,905,289.07 | 13,733,280.71 |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2024 to December 31, 2024（Unless other wise specified, RMB for record in the statement)
| Name of company | Ending balance | Opening balance | Interest income from bank saving in the period |
| Sichuan Changhong Air-conditioner Co., Ltd | 1,255,972,933.70 | 977,689,247.58 | 18,017,640.33 |
| Hefei Changhong Meiling Life Appliances Co., Ltd. | 240,741,317.89 | 243,577,856.45 | 2,978,281.45 |
| Ground Energy Heat Pump Tech. (Zhongshan) Co., Ltd. | 169,736,029.92 | 167,225,376.64 | 3,247,242.76 |
| Changhong Meiling Ridian Technology Co., Ltd. | 80,215,052.07 | 56,655,316.22 | 179,946.97 |
| Zhongke Meiling Cryogenic Technology Co., Ltd | 80,025,044.46 | 60,561,687.38 | 1,101,447.61 |
| Hefei Changhong Industrial Co., Ltd. | 33,061,349.30 | 1,890,237.02 | 68,592.31 |
| Anhui Tuoxing Technology Co., Ltd. | 7,364,529.96 | 7,358,942.16 | 161,550.47 |
| Anhui Ling'an medical equipment Co., Ltd. | 2,991,432.99 | 825.26 | 126.31 |
| Hefei Meiling Group Holdings Limited | 498,534.27 | 304,516.48 | 6,580.09 |
| Mianyang Meiling Refrigeration Co., Ltd. | 14,082.62 | 13,743.00 | 50.63 |
| Jiangxi Meiling Electric Appliance Co., Ltd. | 9,230.50 | 9,667.64 | 39.80 |
| Ground Energy Heat Pump Tech. Co., Ltd. | 0.51 | ||
| Sichuan Changhong Intelligent Air Conditioning Technology Co., Ltd. | 2,016.30 | ||
| Total | 4,568,889,072.96 | 4,329,379,906.69 | 84,770,758.96 |
(2) Discounted bills
| Name | face amount | Bill discount amount | Discounting fees Amount of expenses |
| Sichuan Changhong Air-conditioner Co., Ltd | 888,967,457.93 | 882,371,606.00 | 6,595,851.93 |
| Changhong Meiling Co., Ltd. | 532,621,822.26 | 529,682,758.57 | 2,939,063.69 |
| Sichuan Changhong Intelligent Air Conditioning Technology Co., Ltd | 222,837,475.57 | 222,837,475.57 | |
| Hefei Changhong Meiling Life Appliances Co., Ltd. | 130,877,265.21 | 130,125,972.66 | 751,292.55 |
| Zhongshan Changhong Electric Co., Ltd | 8,377,206.93 | 8,318,511.81 | 58,695.12 |
| Changhong Meiling Ridian Technology | 7,539,519.04 | 7,503,749.88 | 35,769.16 |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2024 to December 31, 2024（Unless other wise specified, RMB for record in the statement)
| Name | face amount | Bill discount amount | Discounting fees Amount of expenses |
| Co., Ltd. | |||
| Anhui Ling'an medical equipment Co., Ltd. | 3,000,000.00 | 2,985,000.00 | 15,000.00 |
| Total | 1,794,220,746.94 | 1,783,825,074.49 | 10,395,672.45 |
(3) Issuance of invoices
| Name of company | Issuer | Bill amount | Types |
| Sichuan Changhong Air-conditioner Co., Ltd. | Sichuan Changhong Group Finance Co., Ltd. | 837,430,755.91 | Financial company acceptance bill |
| Zhongshan Changhong Electric Co., Ltd. | Sichuan Changhong Group Finance Co., Ltd. | 440,492,818.94 | Financial company acceptance bill |
| Ground Energy Heat Pump Tech. (Zhongshan) Co., Ltd. | Sichuan Changhong Group Finance Co., Ltd. | 191,117,342.13 | Financial company acceptance bill |
| Changhong Meiling Co., Ltd. | Sichuan Changhong Group Finance Co., Ltd. | 96,656,000.00 | Financial company acceptance bill |
| Hefei Changhong Meiling Life Appliances Co., Ltd. | Sichuan Changhong Group Finance Co., Ltd. | 95,895,778.80 | Financial company acceptance bill |
| Zhongke Meiling Cryogenic Technology Co., Ltd. | Sichuan Changhong Group Finance Co., Ltd. | 43,722,178.46 | Financial company acceptance bill |
| Hefei Meiling Group Holdings Limited | Sichuan Changhong Group Finance Co., Ltd. | 35,793,311.60 | Financial company acceptance bill |
| Changhong Meiling Ridian Technology Co., Ltd. | Sichuan Changhong Group Finance Co., Ltd. | 8,921,432.24 | Financial company acceptance bill |
| Anhui Ling'an medical equipment Co., Ltd. | Sichuan Changhong Group Finance Co., Ltd. | 1,074,502.45 | Financial company acceptance bill |
| Total | 1,751,104,120.53 |
(4) Credit or other financial services
| Name | Transaction content | Amount incurred this year |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2024 to December 31, 2024（Unless other wise specified, RMB for record in the statement)
| Name | Transaction content | Amount incurred this year |
| Sichuan Changhong Air Conditioning Co., Ltd | Guarantee letter | 628,690.07 |
| Total | 628,690.07 |
10.Remuneration for key management
| Item | Current Year (In 10 thousand yuan) | Last Year (In 10 thousand yuan) |
| Remuneration for key management | 920.64 | 516.67 |
(III) Come and go balance with related parties
1. Receivable items
| Item | Related party | Balance at year-end | Balance at year-begin | ||
| Book balance | Bad debt provision | Book balance | Bad debt provision | ||
| Account receivable | Sichuan Zhiyijia Network Technology Co., Ltd. | 128,220,885.04 | 83,477,192.59 | 188,235,530.60 | 110,410,176.95 |
| Account receivable | CHANGHONG (HK) TRADING LIMITED | 124,276,627.62 | 139,679,048.37 | ||
| Account receivable | Changhong International Holdings (Hong Kong) Co., Ltd. | 90,937,385.97 | 5,052,875.52 | 67,734,903.25 | 3,339,617.94 |
| Account receivable | CHANGHONG ELECTRIC (AUSTRALIA) PTY.LTD. | 74,487,210.94 | 39,350.40 | 79,488,591.21 | |
| Account receivable | Changhong Ruba Electric Company (Private) Ltd. | 41,322,357.73 | 41,322,357.73 | 40,856,357.09 | 40,856,357.09 |
| Account receivable | Orion.PDP.Co.,ltd | 12,279,923.14 | 13,506,278.22 | ||
| Account receivable | Mianyang Huafeng Hulian Technology Co., Ltd. | 9,218,144.00 | 8,800.00 | ||
| Account receivable | Changhong Europe Electric s.r.o | 2,558,625.17 | 42,995.83 | 31,860,854.17 | |
| Account receivable | Sichuan Changhong Electric Appliance Co., Ltd | 729,165.87 | 7,510,684.66 | ||
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2024 to December 31, 2024（Unless other wise specified, RMB for record in the statement)
| Item | Related party | Balance at year-end | Balance at year-begin | ||
| Book balance | Bad debt provision | Book balance | Bad debt provision | ||
| Account receivable | Sichuan Aichuang Technology Co., Ltd. | 402,121.61 | 3,195,467.74 | ||
| Account receivable | Yuanxin Financial Leasing Co., Ltd. | 381,503.00 | 558,665.14 | ||
| Account receivable | Changhong Huayi Compressor Co., Ltd. | 380,929.13 | 718,403.54 | ||
| Account receivable | Sichuan Service Exp. Appliance Service Chain Co., Ltd. | 323,007.09 | 351,250.17 | ||
| Account receivable | Sichuan ChanghongJijia Fine Co., Ltd. | 293,742.36 | |||
| Account receivable | Sichuan Changhong Electric Part Co., Ltd. | 8,300.00 | |||
| Account receivable | Sichuan Aoku Technology Co., Ltd. | 5,618.00 | |||
| Account receivable | Sichuan Changhong Minsheng Logistics Co., Ltd. | 2,980.00 | 12,760.00 | ||
| Account receivable | Sichuan Changhong Intelligent Manufacturing Technology Co., Ltd. | 727,500.00 | |||
| Account paid in advance | Sichuan Changhong Electric Co., Ltd. | 216,411.80 | |||
| Account paid in advance | Sichuan Huafeng Technology Co., Ltd./ | 176,400.00 | |||
| Account receivable | Sichuan Changhong Modeling Technology Co., Ltd. | 176,175.52 | |||
| Account receivable | Sichuan Changhong Real Estate Co., Ltd. | 119,213.45 | |||
| Account receivable | Sichuan Changhong New Network Technology Co., Ltd. | 112,000.00 | |||
| Account receivable | Sichuan Changhong Network Technology Co., Ltd. | 96,000.00 | |||
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2024 to December 31, 2024（Unless other wise specified, RMB for record in the statement)
| Item | Related party | Balance at year-end | Balance at year-begin | ||
| Book balance | Bad debt provision | Book balance | Bad debt provision | ||
| Account receivable | Sichuan Changhong Lithium Battery Technology Co., Ltd. | 30,600.00 | |||
| Account receivable | Sichuan Changhong Electric Part Co., Ltd. | 954.00 | |||
| Account receivable | Sichan Changhong Electric Holdings Group Co., Ltd. | 720.00 | |||
| Account paid in advance | Chengdu Changhong Electric Technology Co., Ltd. | 345,692.58 | 381,126.07 | ||
| Account paid in advance | Sichuan Changhong Minsheng Logistics Co., Ltd. | 248,306.00 | 8,396.00 | ||
| Account paid in advance | Sichuan Ailian Technology Co., Ltd. | 50,889.49 | 53,247.60 | ||
| Account paid in advance | Sichuan Changhong Electric Co., Ltd. | 19.17 | |||
| Other account receivable | Sichuan Hongyun New-Generation Information technology Venture Capital Fund Partnership (limited partnership) | 2,217,600.00 | |||
| Other account receivable | Sichuan Service Exp. Appliance Service Chain Co., Ltd. | 570,493.29 | 313,490.41 | ||
| Other account receivable | Sichuan Zhyijia Network Technology Co., Ltd. | 209,510.00 | 303,019.00 | ||
| Other account receivable | Sichuan Jiahong Industrial Co., Ltd. | 19,982.00 | |||
| Other account receivable | Sichuan Changhong Property Service Co., Ltd. | 2,904.93 | 2,904.93 | ||
| Other account | Sichuan Changhong Electric Appliance | 17,129,427.73 | |||
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2024 to December 31, 2024（Unless other wise specified, RMB for record in the statement)
| Item | Related party | Balance at year-end | Balance at year-begin | ||
| Book balance | Bad debt provision | Book balance | Bad debt provision | ||
| receivable | Co., Ltd | ||||
| Contract assets | Yuanxin Financial Leasing Co., Ltd. | 534,886.00 | |||
| Total | 490,028,790.96 | 129,934,772.07 | 593,565,199.84 | 154,606,151.98 | |
2.Payable items
| Item | Related party | Balance at year-end | Balance at year-begin |
| Account payable | Sichuan Changhong Electric Holdings Group Co., Ltd. | 299,558,983.37 | 23,732,724.50 |
| Account payable | Sichuan Changhong Mold Plastic Tech. Co., Ltd. | 258,862,002.89 | 173,023,852.05 |
| Account payable | Sichuan ChanghongJijia Fine Co., Ltd. | 130,536,924.54 | 32,211,531.65 |
| Account payable | Changhong Huayi Compressor Co., Ltd. | 106,340,141.35 | 117,609,190.18 |
| Account payable | Sichuan Changxin Refrigeration Parts Co., Ltd. | 55,712,908.20 | 17,976,156.76 |
| Account payable | Sichuan Aichuang Science & Technology Co., Ltd. | 50,559,432.86 | 56,579,812.80 |
| Account payable | Sichuan Changhong Package Printing Co., Ltd. | 37,429,782.71 | 14,430,893.66 |
| Account payable | Changhong Ruba Electric Company (Private) Ltd. | 19,165,511.45 | 13,195,411.19 |
| Account payable | Sichuan Changhong Electric Co., Ltd. | 16,714,312.78 | 2,863,953.34 |
| Account payable | Changhong International Holdings (Hong Kong) Co., Ltd. | 16,331,072.34 | 8,933,631.46 |
| Account payable | Sichuan Changhong Precision Electronics Tech. Co., Ltd. | 7,834,650.42 | 2,884,803.49 |
| Account payable | Sichuan Aoku Technology Co., Ltd. | 7,036,322.79 | 14,614,765.93 |
| Account payable | Sichuan Changhong Electronic Products Co., Ltd. | 6,151,227.60 | 3,801,344.25 |
| Account payable | Sichuan Changhong Minsheng Logistics Co., Ltd. | 3,463,779.16 | 4,022,048.97 |
| Account payable | Sichuan Ailink Technology Co., Ltd. | 3,277,511.80 | 1,721,318.59 |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2024 to December 31, 2024（Unless other wise specified, RMB for record in the statement)
| Item | Related party | Balance at year-end | Balance at year-begin |
| Account payable | Guangdong Changhong Electric Co., Ltd. | 3,006,306.65 | 1,554,593.15 |
| Account payable | Sichuan Service Exp. Appliance Service Chain Co., Ltd. | 892,549.81 | 725,473.65 |
| Account payable | Sichuan Hongxin Software Co., Ltd. | 779,047.17 | 451,301.89 |
| Account payable | Sichuan Hongwei Technology Co., Ltd. | 297,860.00 | 5,492.64 |
| Account payable | Sichuan Changhong Electronic Products Co., Ltd. | 272,906.94 | 1,148,884.00 |
| Account payable | Sichuan Changhong New Energy Technology Co., Ltd. | 252,981.10 | 225,732.08 |
| Account payable | Sichuan Changhong Intelligent Manufacturing Technology Co., Ltd. | 239,196.58 | 270,846.58 |
| Account payable | Sichuan Changhong International Hotel Co., Ltd. | 106,873.00 | 146,276.00 |
| Account payable | Sichuan Zhiyijia Network Technology Co., Ltd. | 32,784.73 | 35,267.63 |
| Account payable | Sichuan Qiruik Technology Co., Ltd. | 32,000.00 | 32,000.00 |
| Account payable | Chengdu Guigu Environmental Tech. Co., Ltd | 8,247.36 | 57,178.00 |
| Account payable | Mianyang Haili Appliance Co., Ltd. | 17,723,765.52 | |
| Account payable | PT.CHANGHONG ELECTRIC INDONESIA | 1,514,130.31 | |
| Account payable | GuangyuanChanghong Electric Technology Co., Ltd. | 50,286.58 | |
| Account payable | Sichuan Jiahong Industrial Co., Ltd. | 396.00 | |
| Contract liability | Sichuan Zhiyijia Network Technology Co., Ltd. | 71,546,849.75 | 32,073,215.34 |
| Contract liability | Zhongjiu Flash Medical Technology Co., Ltd | 419,207.79 | |
| Contract liability | Sichuan Changhong Electric Co., Ltd. | 354,131.55 | 353,941.29 |
| Contract liability | Sichuan Changhong International Holidng(hk) Co., Ltd | 427,524.59 | 91,046.37 |
| Contract liability | Sichuan Aichuang Technology Co., Ltd. | 198,900.00 |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2024 to December 31, 2024（Unless other wise specified, RMB for record in the statement)
| Item | Related party | Balance at year-end | Balance at year-begin |
| Contract liability | Sichuan ChanghongGerun Environmental Protection Technology Co., Ltd | 175,023.04 | |
| Contract liability | Sichuan Baiku Technology Co., Ltd. | 138,472.56 | 22,932.74 |
| Contract liability | Sichuan Service Exp. Appliance Service Chain Co., Ltd. | 42,786.17 | 10,727.89 |
| Contract liability | Sichuan Changhong Minsheng Logistics Co., Ltd. | 14,654.89 | 14,654.86 |
| Contract liability | CHANGHONG (HK) TRADING LIMITED | 922.22 | 908.66 |
| Contract liability | Sichuan Anshifei Technology Co., Ltd. | 2,646.19 | |
| Contract liability | Sichuan Changhong Mold Plastic Tech. Co., Ltd. | 2,415.93 | |
| Contract liability | 081 Electronic Group Co., Ltd. | 22.61 | |
| Lease liability | Sichuan Changhong Electric Co., Ltd. | 24,991,184.60 | 27,418,257.97 |
| Lease liability | Chengdu Changhong Electronic Technology Co., Ltd. | 345,692.58 | 381,126.07 |
| Lease liability | Sichuan Changhong Electronics Holding Group Co., Ltd. | 188,111.02 | |
| Lease liability | Chengdu Changhong Electronic Technology Co., Ltd. | 381,126.07 | |
| Other payable | Sichuan Changhong Minsheng Logistics Co., Ltd. | 168,320,548.19 | 132,815,918.64 |
| Other payable | Sichuan Service Exp. Appliance Service Chain Co., Ltd. | 129,354,211.90 | 82,400,851.21 |
| Other payable | Sichuan Changhong Electric Co., Ltd. | 4,455,214.28 | 58,735.52 |
| Other payable | Sichuan Changhong Electronics Holding Group Co., Ltd. | 2,235,171.18 | 393,156.00 |
| Other payable | Sichuan Changhong Mold Paasitic Technology Co., Ltd | 1,933,572.12 | 2,559,981.65 |
| Other payable | Changhong Huayi Compressor Co., Ltd. | 1,801,167.60 | 1,903,400.00 |
| Other payable | Sichuan Hongwei Technology Co., Ltd. | 1,262,762.78 | - |
| Other payable | Sichuan Qiruik Technology Co., Ltd. | 826,071.35 | 585,767.70 |
| Other payable | Sichuan ChanghongJijia Fine Co., Ltd. | 430,500.00 | 425,492.32 |
| Other payable | Sichuan Jiahong Industrial Co., Ltd. | 301,482.92 | 18.00 |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2024 to December 31, 2024（Unless other wise specified, RMB for record in the statement)
| Item | Related party | Balance at year-end | Balance at year-begin |
| Other payable | Sichuan Zhiyijia Network Technology Co., Ltd. | 232,021.08 | 566,063.25 |
| Other payable | Sichuan Hongxin Software Co., Ltd. | 187,735.85 | 594,516.98 |
| Other payable | Sichuan ChanghongGerun Environmental Protection Technology Co., Ltd | 150,000.00 | - |
| Other payable | Sichuan Aoku Technology Co., Ltd. | 132,973.56 | 260,212.20 |
| Other payable | Sichuan Aichuang Technology Co., Ltd. | 101,132.08 | 1,443,020.00 |
| Other payable | Sichuan Changhong Electronic Products Co., Ltd. | 100,000.00 | 50,000.00 |
| Other payable | Sichuan Changxin Refrigeration Parts Co., Ltd. | 57,098.03 | 173,907.41 |
| Other payable | Sichuan Ailian Technology Co., Ltd. | 51,306.28 | 50,000.00 |
| Other payable | Sichuan Changhong Package Printing Co., Ltd. | 50,000.00 | 139,699.18 |
| Other payable | 081 Electronic Group Co., Ltd. | 40,867.89 | - |
| Other payable | Sichuan Changhong Intelligence Manufacturing Technology Co., Ltd. | 34,550.00 | 109,596.00 |
| Other payable | Guangdong Changhong Electric Co., Ltd. | 17,514.52 | 25,113.76 |
| Other payable | Chengdu Guigu Environmental Technology Co., Ltd | 5,717.80 | - |
| Other payable | Sichuan Changhong International Hotel Co., Ltd | 849.06 | - |
| Other payable | Yuanxin Financial Leasing Co., Ltd | - | 61,295,062.03 |
| Other payable | Sichuan Changhong New Energy Technology Co., Ltd. | - | 50,000.00 |
| Other payable | CHANGHONG (HK) TRADING LIMITED | - | 3,334.85 |
| Other payable | Sichuan Changhong Precision Electronic Technology Co., Ltd | - | 734.43 |
| Other payable | Sichuan Changhong Device Technology Co., Ltd. | - | 29.70 |
| Total | 1,435,821,246.83 | 858,200,695.67 | |
XIII. Commitments and contingencies(I) Important commitmentsAs of December 31, 2024, the Company has no important commitments that should bedisclosed but not disclosed.
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2024 to December 31, 2024（Unless other wise specified, RMB for record in the statement)
(II) Contingency
1. Pending action or possible liabilities formed from arbitration
In November 2021, Zhejiang Teruisi Pharmaceutical Co., Ltd. filed a lawsuit againstZhongke Meiling for the "Contract for Cold Storage Design, Equipment Procurement andInstallation Construction". Up to now, Zhongke Meiling and Zhejiang Teruisi Pharmaceutical Inc.have reached a preliminary settlement intention, and have withdrawn the third-stage cost appraisalfrom the court, and both are communicating the project maintenance plan. The estimatedmaintenance cost is RMB 1,720,534.42.As of December 31, 2024, apart from the aforementioned lawsuits, some of our subsidiarieshave been defendants in certain legal proceedings and plaintiffs in other lawsuits that arise in ourdaily business operations. Although the outcome of these contingencies, legal proceedings, orother lawsuits cannot be determined at present, the management believes that any resultingliabilities will not have a significant negative impact on the financial condition or operatingperformance of the companyXIVI. Events occurring after the balance sheet date
1. Profit distribution:
According to the audit by Pan-China Certified Public Accountants LLP, in 2024, the net profitrealized in individual financial statements of the parent company was RMB 254,008,762.00. As ofDecember 31, 2024, the cumulative undistributed profit in individual financial statements of theparent company was RMB1,213,740,009.40. In addition, in the consolidated financial statementsof the company for the year 2024, the net profit attributable to the owners of the parent companywas 699,270,051.82 yuan. As of December 31, 2024, the cumulative undistributed profit in theconsolidated financial statements was 1,803,207,185.06 yuan.According to relevant regulations, the distribution of company profits should be based on theprofits available for distribution by the parent company, and follow the principle of distributingthe lower of the cumulative undistributed profits in the consolidated financial statements and theparent company's financial statements. Therefore, the distributable profit for 2024 is theaccumulated undistributed profit of RMB 1,213,740,009.40 in individual financial statements ofthe parent companyBased on relevant regulations and the provisions of the Company's Articles of Association, takinginto account the interests of shareholders and the long-term development needs of the company, itis proposed to: Based on the total share capital of 1,029,923,715 shares as of December 31, 2024,the company will distribute a cash dividend of 3.3 yuan (including tax) to all shareholders forevery 10 shares, without bonus shares or conversion of reserve funds into share capital. It isexpected to distribute a cash dividend of 339,874,825.95 yuan.After this distribution, it is expected that the remaining cumulative undistributed profit of theparent company will be 873,865,183.45 yuan, and the remaining undistributed profit will be
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2024 to December 31, 2024（Unless other wise specified, RMB for record in the statement)
carried forward for distribution in future years.The aforementioned plan has been reviewed and approved by the 12th meeting of the 11th Boardof Directors of the company and is still awaiting approval by the shareholders' meeting.XV. Other significant matters(I) Branch information
1. Determine the factors considered by the reporting segment
The Company determines the reporting segment based on the internal organizational structure,management requirements and internal reporting system, and according to the business segment. Itassesses the operating performance of refrigerator, freezer and washing machine business, airconditioner business, small home appliances business and other product business respectively.
2.Branch information
In RMB 10,000
| Item | Refrigerator, freezer Washing machine | Air-conditioner | Small home appliances | Other | Sales in branch | Total |
| Operation income | 1,142,403.05 | 1,561,619.05 | 167,973.88 | 45,208.54 | 57,100.91 | 2,860,103.60 |
| Including: foreign trade income | 1,133,744.67 | 1,561,597.20 | 148,555.36 | 16,206.38 | 2,860,103.60 | |
| Income from transactions between divisions | 8,658.38 | 21.85 | 19,418.51 | 29,002.17 | 57,100.91 | |
| Operation expenses | 1,121,856.59 | 1,519,683.59 | 165,473.48 | 42,824.09 | 56,715.27 | 2,793,122.48 |
| Other income and expense items | 12,667.10 | 1,917.89 | 1,628.23 | 988.70 | 2,825.27 | 14,376.66 |
| Operation profit | 33,213.56 | 43,853.34 | 4,128.62 | 3,373.15 | 3,210.90 | 81,357.78 |
| Total assets | 1,356,959.01 | 1,085,358.64 | 91,131.17 | 49,139.52 | 203,023.35 | 2,379,565.00 |
| Total liability | 811,539.38 | 897,997.95 | 60,986.28 | 12,272.00 | 37,578.81 | 1,745,216.79 |
| Supplementary information |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2024 to December 31, 2024（Unless other wise specified, RMB for record in the statement)
| Depreciation and amortization expenses | 24,434.53 | 16,321.41 | 324.24 | 2,045.56 | 183.58 | 42,942.15 |
| Capital expenditure | 21,278.25 | 27,359.30 | 7.99 | 953.55 | 49,599.08 |
Not :Total assets do not include deferred income tax assets, and total liabilities exclude deferredincome tax liabilities.XVI. Notes to main items of financial statement of parent company
1.Account receivable
(1) By account age
| Account age | Balance at year-end | Balance at year-begin |
| Within 1 year（Including 1 year） | 844,020,537.28 | 1,455,451,760.05 |
| Including： | ||
| Within 3 months (3 months included) | 804,602,070.05 | 1,405,485,686.08 |
| More than 3 months and less than 6 months (6 months included) | 37,341,630.48 | 40,372,699.21 |
| Over 6 months and within one year (One year included) | 2,076,836.75 | 9,593,374.76 |
| Over one year - within 2 years (2 years included) | 967,919.29 | 13,012,239.58 |
| Over 2 years - within 3 years (3 years included) | 6,068,876.14 | 26,677,206.61 |
| Over 3 years | 46,551,037.50 | 24,592,353.91 |
| Total | 897,608,370.21 | 1,519,733,560.15 |
(2) By accrual of bad debt provision
1) Detail
| Category | Ending Balance | ||||
| Book balance | Bad debt provision | Book value | |||
| Amount | Ratio (%) | Amount | Ratio (%) | ||
| Account receivable that withdrawal bad debt provision by single item | 550,963,154.98 | 61.38 | 57,852,034.98 | 10.50 | 493,111,120.00 |
| Including: Account receivable with letter of credit | 24,607,781.54 | 2.74 | 24,607,781.54 | ||
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2024 to December 31, 2024（Unless other wise specified, RMB for record in the statement)
| Category | Ending Balance | ||||
| Book balance | Bad debt provision | Book value | |||
| Amount | Ratio (%) | Amount | Ratio (%) | ||
| Current payment with related party | 506,527,455.83 | 56.43 | 40,131,974.45 | 7.92 | 466,395,481.38 |
| Receivables whose single amount is not significant but whose single provision for bad debts | 19,827,917.61 | 2.21 | 17,720,060.53 | 89.37 | 2,107,857.08 |
| Account receivable withdrawal bad debt provision by portfolio | 346,645,215.23 | 38.62 | 6,520,449.24 | 1.88 | 340,124,765.99 |
| Including: account receivable of engineering customers | 346,645,215.23 | 38.62 | 6,520,449.24 | 1.88 | 340,124,765.99 |
| Total | 897,608,370.21 | 100.00 | 64,372,484.22 | 7.17 | 833,235,885.99 |
Continued
| Category | Amount at year-begin | ||||
| Book balance | Bad debt provision | Book value | |||
| Amount | Ratio (%) | Amount | Ratio (%) | ||
| Account receivable that withdrawal bad debt provision by single item | 876,212,956.55 | 57.66 | 53,914,896.27 | 6.15 | 822,298,060.28 |
| Including: Account receivable with letter of credit | 52,483,325.93 | 3.45 | 52,483,325.93 | ||
| Current payment with related party | 803,660,757.46 | 52.88 | 39,553,880.21 | 4.92 | 764,106,877.25 |
| Receivables whose single amount is not significant but whose single provision for bad debts | 20,068,873.16 | 1.32 | 14,361,016.06 | 71.56 | 5,707,857.10 |
| Account receivable withdrawal bad debt provision by portfolio | 643,520,603.60 | 42.34 | 14,023,130.16 | 2.18 | 629,497,473.44 |
| Including: account receivable of engineering customers | 643,520,603.60 | 42.34 | 14,023,130.16 | 2.18 | 629,497,473.44 |
| Total | 1,519,733,560.15 | 100.00 | 67,938,026.43 | 4.47 | 1,451,795,533.72 |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2024 to December 31, 2024（Unless other wise specified, RMB for record in the statement)
2) ) Account receivable withdrawal bad debt provision by portfolio
| Account age | Balance at year-end | ||
| Book balance | Bad debt provision | Provision ratio (%) | |
| Within 3 months (3 months included) | 341,176,281.76 | 3,411,762.82 | 1.00 |
| More than 3 months and less than 6 months (6 months included) | 342,770.62 | 34,277.06 | 10.00 |
| Over 6 months and within one year (One year included) | 2,076,836.75 | 415,367.35 | 20.00 |
| Over one year - within 2 years (2 years included) | 780,567.95 | 390,283.98 | 50.00 |
| Over 2 years - within 3 years (3 years included) | 0.60 | 0.48 | 80.00 |
| Over 3 years | 2,268,757.55 | 2,268,757.55 | 100.00 |
| Total | 346,645,215.23 | 6,520,449.24 | 1.88 |
Continued
| Account age | Balance at year-begin | ||
| Book balance | Bad debt provision | Provision ratio (%) | |
| Within 3 months (3 months included) | 616,484,217.92 | 6,164,842.18 | 1.00 |
| More than 3 months and less than 6 months (6 months included) | 10,991,345.13 | 1,099,134.51 | 10.00 |
| Over 6 months and within one year (One year included) | 9,190,814.21 | 1,838,162.84 | 20.00 |
| Over one year - within 2 years (2 years included) | 2,053,806.51 | 1,026,903.26 | 50.00 |
| Over 2 years - within 3 years (3 years included) | 4,531,662.28 | 3,625,329.82 | 80.00 |
| Over 3 years | 268,757.55 | 268,757.55 | 100.00 |
| Total | 643,520,603.60 | 14,023,130.16 | 2.18 |
(3) Changes in bad debt provisions
1) Detail
| Category | Balance at year-begin | Changes this year | Balance at year-end | |||
| Accrual | Withdrawal or reversal | Resale or write-off | Other decreases | |||
| Withdrawal bad debt | 53,914,896.27 | 3,987,224.58 | 50,085.87 | 57,852,034.98 | ||
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2024 to December 31, 2024（Unless other wise specified, RMB for record in the statement)
| Category | Balance at year-begin | Changes this year | Balance at year-end | |||
| Accrual | Withdrawal or reversal | Resale or write-off | Other decreases | |||
| provision by single item | ||||||
| Withdrawal bad debt provision by portfolio | 14,023,130.16 | -7,502,680.92 | 6,520,449.24 | |||
| Total | 67,938,026.43 | -3,515,456.34 | 50,085.87 | 64,372,484.22 | ||
(5) Top 5 accounts receivable and contract assets amount
Top 5 receivables collected by arrears party amounting to 540,891,866.45 yuan in total, accountedfor 60.26% of the receivables of current year-end, the bad debt provision accrual correspondinglyamounting to 2,028,050.45 yuan at year-end balance.
2.Other account receivable
(1) Detail
| Ending balance | Ending balance | Opening balance |
| Dividend receivable | 12,124,951.70 | |
| Other account receivable | 137,057,080.76 | 61,841,221.91 |
| Total | 149,182,032.46 | 61,841,221.91 |
(2) Dividend receivable
Detail
| Ending balance | Ending balance | Opening balance |
| Sichuan Zhiyijia Network Technology Co., Ltd. | 11,849,751.70 | |
| Sichuan Hongyun New Generation Information Technology Venture Capital Fund Partnership Enterprise (Limited Partnership | 275,200.00 | |
| Subtotal | 12,124,951.70 |
(3) Other receivable
1)) Category of other account receivable
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2024 to December 31, 2024（Unless other wise specified, RMB for record in the statement)
| Nature | Book balance at year-end | Book balance at year-begin |
| Loans of employee’s pretty cash | 5,755,189.42 | 10,727,346.46 |
| Cash deposit | 4,369,898.32 | 4,109,987.09 |
| Export rebate | 95,274,068.20 | 41,179,511.61 |
| Related party | 31,839,049.68 | 5,957,370.23 |
| Other | 473,034.34 | 456,265.42 |
| Subtotal | 137,711,239.96 | 62,430,480.81 |
2) By account age
| Account age | Balance at year-end | Balance at year-begin |
| Within 3 months | 105,115,890.25 | 53,994,269.35 |
| More than 3 months and less than 6 months | 370,007.17 | 1,161,881.37 |
| Over 6 months and within one yea | 971,808.01 | 2,017,703.46 |
| 1-2 years | 1,486,879.41 | 1,206,412.81 |
| 2-3 years | 313,350.00 | 1,288,721.92 |
| Over 3 years | 29,453,305.12 | 2,761,491.90 |
| Subtotal | 137,711,239.96 | 62,430,480.81 |
3) By accrual of bad debt provision
①Detail
| Category | Amount at year-end | ||||
| Book balance | Bad debt provision | Book value | |||
| Amount | Ratio (%) | Amount | Ratio (%) | ||
| That withdrawal bad debt provision by single item | 137,711,239.96 | 100.00 | 654,159.20 | 0.48 | 137,057,080.76 |
| In which: other receivables with no major individual amount but bad debt provision accrued individually | 10,598,122.08 | 7.70 | 654,159.20 | 6.17 | 9,943,962.88 |
| Export rebate receivable | 95,274,068.20 | 69.18 | 95,274,068.20 | ||
| Other receivables under the same control and of related | 31,839,049.68 | 23.12 | 31,839,049.68 | ||
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2024 to December 31, 2024（Unless other wise specified, RMB for record in the statement)
| Category | Amount at year-end | ||||
| Book balance | Bad debt provision | Book value | |||
| Amount | Ratio (%) | Amount | Ratio (%) | ||
| parties with significant influence | |||||
| In which: other receivables accrued by aging portfolio | |||||
| Total | 137,711,239.96 | 100.00 | 654,159.20 | 0.48 | 137,057,080.76 |
Continued
| Category | Balance at year-begin | ||||
| Book balance | Bad debt provision | Book value | |||
| Amount | Ratio (%) | Amount | Ratio (%) | ||
| That withdrawal bad debt provision by single item | 62,430,480.81 | 100.00 | 589,258.90 | 0.94 | 61,841,221.91 |
| In which: other receivables with no major individual amount but bad debt provision accrued individually | 15,293,598.97 | 24.50 | 589,258.90 | 3.85 | 14,704,340.07 |
| Export rebate receivable | 41,179,511.61 | 65.96 | 41,179,511.61 | ||
| Other receivables under the same control and of related parties with significant influence | 5,957,370.23 | 9.54 | 5,957,370.23 | ||
| In which: other receivables accrued by aging portfolio | |||||
| Total | 62,430,480.81 | 100.00 | 589,258.90 | 0.94 | 61,841,221.91 |
4) Changes in bad debt provisions
①Detail
| Item | First stage | Second stage | Third stage | Subtotal |
| Expected credit loss in next 12 months | Expected credit loss for the whole duration (no credit impairment) | Expected credit loss for the whole duration (credit impairment has occurred) | ||
| Balance at year-begin | 589,258.90 | 589,258.90 | ||
| Balance at year-begin in Current Year | —— | —— | —— |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2024 to December 31, 2024（Unless other wise specified, RMB for record in the statement)
| Item | First stage | Second stage | Third stage | Subtotal |
| Expected credit loss in next 12 months | Expected credit loss for the whole duration (no credit impairment) | Expected credit loss for the whole duration (credit impairment has occurred) | ||
| --Transfer to the second stage | ||||
| -- Transfer to the third stage | ||||
| -- Reversal to the second stage | ||||
| -- Reversal to the first stage | ||||
| Provision in Current Year | 64,900.30 | 64,900.30 | ||
| Reversal in Current Year | ||||
| Write off in Current Year | ||||
| Other change | ||||
| Balance at year-end | 654,159.20 | 654,159.20 |
②Bad debt provision for other receivables accrued, recovered or reversed this year
| Category | Year-beginning | Amount of change this year | Year-end balance | |||
| Accrual | Recovery or reversal | Write-off or cancellation | Other | |||
| Withdrawal bad debt provision by single item | 589,258.90 | 64,900.30 | 654,159.20 | |||
| Total | 589,258.90 | 64,900.30 | 654,159.20 | |||
5) Top 5 other receivables
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2024 to December 31, 2024（Unless other wise specified, RMB for record in the statement)
| Name | Nature | Balance at year-end | Account age | Proportion in total other receivables ending balance (%) | Bad debt provision Balance at year-end |
| Unit I | Tax rebate | 95,274,068.20 | Within 3 months | 69.18 | |
| Unit II | Related party | 26,524,883.46 | Within 3 months,6months-1 year,1-2 years,2-3 years,Over 3 years | 19.26 | |
| Unit III | Loans of employee’s pretty cash | 2,217,600.00 | Within 3 months | 1.61 | |
| Unit IV | Cash deposit | 1,461,173.01 | Within 3 months | 1.06 | |
| Unit V | Loans of employee’s pretty cash | 1,437,680.00 | Within 3 months | 1.05 | |
| Total | 126,915,404.67 | 92.16 |
3. Long-term equity investments
(1) Detail
| Item | Ending balance | ||
| Book balance | Impairment loss | Book value | |
| Investment in subsidiaries: | 1,988,985,053.01 | 1,988,985,053.01 | |
| Investment in associates: | 74,340,161.06 | 74,340,161.06 | |
| Total | 2,063,325,214.07 | 2,063,325,214.07 | |
(Continued)
| Item | Opening balance | ||
| Book balance | Impairment loss | Book value | |
| Investment in subsidiaries: | 1,756,435,120.88 | 1,756,435,120.88 | |
| Investment in associates: | 101,040,690.02 | 101,040,690.02 | |
| Total | 1,857,475,810.90 | 1,857,475,810.90 | |
(2) Investment in subsidiaries
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2024 to December 31, 2024（Unless other wise specified, RMB for record in the statement)
| Invested enterprise | Opening balance | Changes in Current Period | ||||
| Book balance | Impairment loss | Additional Investment | Negative Investment | Provision for impairment loss | Other | |
| Zhongke Meiling Cryogenic Technology Co., Ltd | 42,652,000.00 | |||||
| Mianyang Meiling Refrigeration Co., Ltd. | 95,000,000.00 | |||||
| Zhongshan Changhong Electric Co., Ltd | 304,856,419.37 | |||||
| Sichuan Changhong Air-conditioner Co., Ltd | 955,600,437.79 | |||||
| Hefei Meiling Group Holdings Limited | 113,630,000.00 | |||||
| Jiangxi Meiling Electric Appliance Co., Ltd. | 79,000,000.00 | |||||
| Changhong Meiling Ridian Technology Co., Ltd. | 91,082,111.12 | |||||
| Hefei Meiling Wulian Technology Co., Ltd | 10,000,000.00 | |||||
| CH-Meiling.International (Philippines) Inc. | 6,889,100.00 | |||||
| Hefei Changhong Meiling Life Appliances Co., Ltd. | 35,000,000.00 | |||||
| Sichuan Hongmei Intelligent Technology Co., Ltd | 22,725,052.60 | |||||
| Hefei Changhong Industrial Co., Ltd. | 232,549,932.13 | |||||
| Subtotal | 1,756,435,120.88 | 232,549,932.13 | ||||
(continued)
| Invested enterprise | Ending balance | |
| Book balance | Impairment loss | |
| Zhongke Meiling Cryogenic Technology Co., Ltd | 42,652,000.00 | |
| Mianyang Meiling Refrigeration Co., Ltd. | 95,000,000.00 | |
| Zhongshan Changhong Electric Co., Ltd | 304,856,419.37 | |
| Sichuan Changhong Air-conditioner Co., Ltd | 955,600,437.79 | |
| Hefei Meiling Group Holdings Limited | 113,630,000.00 | |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2024 to December 31, 2024（Unless other wise specified, RMB for record in the statement)
| Jiangxi Meiling Electric Appliance Co., Ltd. | 79,000,000.00 | |
| Changhong Meiling Ridian Technology Co., Ltd. | 91,082,111.12 | |
| Hefei Meiling Wulian Technology Co., Ltd | 10,000,000.00 | |
| CH-Meiling.International (Philippines) Inc. | 6,889,100.00 | |
| Hefei Changhong Meiling Life Appliances Co., Ltd. | 35,000,000.00 | |
| Sichuan Hongmei Intelligent Technology Co., Ltd | 22,725,052.60 | |
| Hefei Changhong Industrial Co., Ltd. | 232,549,932.13 | |
| Subtotal | 1,988,985,053.01 |
(3) Investment in associates
| Invested enterprise | Opening balance | Changes in Current Period | ||||
| Book value | Impairment loss | Additional Investment | Negative Investment | Investment gains and losses recognized under the equity metho | Other comprehensive, earnings adjustment | |
| Hefei Xingmei Assets Management Co., Ltd. | 14,139,256.78 | 25,235.21 | ||||
| Sichuan Zhiyijia Network Technology Co., Ltd. | 68,854,162.70 | 8,268,998.98 | ||||
| Sichuan Hongyun Venture Capital Partnership (Limited partnership) | 18,047,270.54 | 18,000,000.00 | 104,729.46 | |||
| Total | 101,040,690.02 | 18,000,000.00 | 8,398,963.65 | |||
（continued）
| Invested enterprise | Changes in Current Period | Ending balance | ||||
| Other equity change | Cash dividend or profit announced to issued | Provision for impairment loss | Other | Book value | Impairment loss | |
| Hefei Xingmei Assets Management Co., Ltd. | 14,164,491.99 | |||||
| Sichuan Zhiyijia Network Technology | 16,947,492.61 | 60,175,669.07 | ||||
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2024 to December 31, 2024（Unless other wise specified, RMB for record in the statement)
| Invested enterprise | Changes in Current Period | Ending balance | ||||
| Other equity change | Cash dividend or profit announced to issued | Provision for impairment loss | Other | Book value | Impairment loss | |
| Co., Ltd. | ||||||
| Sichuan Hongyun Venture Capital Partnership (Limited partnership) | 152,000.00 | |||||
| Total | 17,099,492.61 | 74,340,161.06 | ||||
(II)profit statement item notes of parent company
1. Operation income, operation cost
(1) Detail
| Item | Current Period | Last Period | ||
| Income | Cost | Income | Cost | |
| Main business | 9,743,416,487.41 | 8,916,334,488.72 | 9,149,147,263.72 | 8,312,866,759.79 |
| Other business | 589,138,389.17 | 534,700,358.27 | 459,251,266.85 | 402,474,977.16 |
| Total | 10,332,554,876.58 | 9,451,034,846.99 | 9,608,398,530.57 | 8,715,341,736.95 |
(2)Income information
| Item | Current Period | Last Period | ||
| Operation income | Operation cost | Operation income | Operation cost | |
| Product | ||||
| Including：air conditioner | 3,447,265.49 | 3,447,282.04 | 9,284,414.16 | 9,279,679.94 |
| Refrigerator, freezer | 7,786,693,499.05 | 7,182,764,867.61 | 7,620,019,850.61 | 6,971,955,522.77 |
| Washing machine | 1,722,549,267.91 | 1,529,070,147.07 | 1,298,981,507.21 | 1,129,740,688.09 |
| Small household appliances and kitchen and bathroom | 230,726,454.96 | 201,052,192.00 | 220,861,491.74 | 201,890,868.99 |
| Other | 589,138,389.17 | 534,700,358.27 | 459,251,266.85 | 402,474,977.16 |
| Area | ||||
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2024 to December 31, 2024（Unless other wise specified, RMB for record in the statement)
| Item | Current Period | Last Period | ||
| Operation income | Operation cost | Operation income | Operation cost | |
| Including：Domestic | 5,675,953,763.65 | 5,366,965,328.84 | 5,565,648,590.03 | 5,302,764,073.54 |
| Overseas | 4,656,601,112.93 | 4,084,069,518.15 | 4,042,749,940.54 | 3,412,577,663.41 |
| Subtotal | 10,332,554,876.58 | 9,451,034,846.99 | 9,608,398,530.57 | 8,715,341,736.95 |
2. Investment income
| Item | Current Year | Last Year |
| Long-term equity investment income by equity method | 8,398,963.65 | 18,713,956.61 |
| Long-term equity investment income by Cost method | 32,784,230.13 | 168,821,072.56 |
| Investment income obtained from the disposal of trading financial assets | 18,233,784.22 | -18,582,366.11 |
| Investment income obtained from disposal of derivative financial assets | -8,333,541.14 | |
| Interest income from debt investment during the holding period | 20,153,596.85 | 14,558,956.62 |
| Investment income of other non-current financial assets during holding period | 14,911,850.55 | 12,932,690.90 |
| The termination of income recognition for financial assets measured by amortized cost | -9,688,921.63 | -6,157,758.00 |
| Total | 76,459,962.63 | 190,286,552.58 |
XVII. Other supplementary information
(1) Non-recurring gains and losses
(1) Detail
| Item | Current Year | Note |
| Non-current asset disposal gain/loss(including the write-off part for which assets impairment provision is made) | -4,568,990.35 | |
| Government subsidies recognized in current gain and loss(excluding those closely related to the Company’s business and granted under the state’s policies) | 95,130,581.90 | |
| Net profit and loss of subsidiaries arising from mergers of enterprises under the same control from the beginning of the period to the merger date | 1,918,902.01 |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2024 to December 31, 2024（Unless other wise specified, RMB for record in the statement)
| Losses/gains from changes of fair values occurred in holding trading financial assets and trading financial liabilities, and investment income obtaining from the disposal of trading financial assets,trading financial liability and financial assets available-for-sale, excluded effective hedging business relevant with normal operations of the Company | -109,763,982.52 | |
| Reversal of the account receivable depreciation reserves subject to separate impairment test | 28,600,649.28 | |
| Other non-operating income and expenses other than the above | 3,048,181.61 | |
| Subtotal | 14,365,341.93 | |
| Less：Impact number of enterprise income tax | -4,813,416.23 | |
| Less: minority shareholders’ equity (post-tax) | 10,356,345.97 | |
| Net non-recurring gains and losses attributable to the owner of the parent company | 8,822,412.19 |
2. Return on equity and earnings per share
| Profit during the report period | Weighted average return on equity | Earnings per share/EPS (RMB/Share) | |
| Basic EPS | Diluted EPS | ||
| Net profit attributable to ordinary shareholders of the parent company | 11.18% | 0.6790 | 0.6790 |
| Net profit attributable to ordinary shareholders of the parent company after deduction of the non-recurring gains/losses | 11.49% | 0.6704 | 0.6704 |
Changhong Meiling Co., Ltd.
Chairman: Wu Dinggang
April 3, 2025